Moody's downgrades Casa Systems

Moody's Ratings said it downgraded Casa Systems, Inc.'s probability of default rating to D-PD from Caa1-PD, corporate family rating and super-priority senior secured term loan rating to Ca from Caa1 and the non-extended original senior secured term loan B to C from Caa3. The speculative grade liquidity rating was downgraded to SGL-4 from SGL-3. The outlook was changed to negative from stable.

These actions follow the April 3 announcement that Casa petitioned for reorganization under Chapter 11 of the U.S. Bankruptcy Code, the agency said.

“The Ca CFR and super priority senior secured term loan rating and C rating on the non-extended original senior secured term loan reflect Moody's expectation of loss to debtholders as a result of the bankruptcy filing,” the agency said in a press release.

Moody’s said it plans to withdraw its ratings for Casa because of the bankruptcy.

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