Moody's downgrades Numotion

Moody's Investors Service said it downgraded NMN Holdings III Corp.’s (Numotion) corporate family rating to B3 from B2, probability of default rating to B3-PD from B2-PD, and first-lien credit facilities' ratings to B2 from B1.

“The ratings downgrade reflects Moody's expectations that Numotion's leverage will likely remain elevated for an extended period. Moody's estimates Numotion's net debt to EBITDA is currently 7.2x as of June 30, 2022. Numotion continues to see strong order demand given the essential nature of its products to its clients.

“However, the company has seen some supply chain challenges converting the orders to revenue due to delays in obtaining critical components. Revenues have also been pressured to some degree by labor pressures. Additionally, Numotion's liquidity is weak as the company has limited cash and the revolver becomes current in November 2023,” the agency said in a press release.

The outlook is negative.

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