Moody’s downgrades Speedcast

Moody’s Investors Service said it cut Speedcast International Ltd.’s corporate family rating and senior secured term loan rating to Ca from Caa1.

“The downgrade reflects Speedcast’s missed interest and principal amortization payment due March 31, 2020, and the forbearance agreement with its lenders, which we consider an event of default,” said Sean Hwang, a Moody’s assistant vice president and analyst, in a press release.

Speedcast announced on April 2, it entered a forbearance agreement with its secured term loan and revolving credit facility lenders. The agreement will provide the company with temporary relief from lender actions until April 17 in relation to its covenant breach and missed payment.

“The missed payment highlights the severe challenges facing Speedcast and its key customers because of the significant disruptions in their operations and falling oil prices amid the coronavirus outbreak. This situation will strain the company’s cash flow and liquidity, further raising the likelihood of significant debt restructuring,” the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.