Moody’s lowers SI Group

Moody’s Investors Service said it downgraded Polar US Borrower, LLC's (SI Group) corporate family rating to Caa1 from B3 and probability of default rating to Caa1-PD from B3-PD. The agency also lowered the senior secured first-lien term loan and senior secured first-lien revolving credit facility to Caa1 from B3 and senior unsecured notes due 2026 to Caa3 from Caa2.

The agency concurrently changed the outlook to negative from stable.

"The downgrade and outlook revision reflects SI Group's deterioration in credit metrics given lower volumes as a result of customer destocking and unfavorable price/mix effect that has led to a weakening liquidity position," said Domenick R. Fumai, a Moody's vice president and lead analyst for Polar US Borrower, in a press release.

In fact, Moody’s said it estimates SI Group’s adjusted debt/ EBITDA of about 14x in FY2023 and sees it remaining at 10.5x in FY2024.

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