Moody’s cuts Cobham

Moody’s Investors Service said it downgraded AI Convoy (Luxembourg) Sarl’s (Cobham) to B2 from B1 ratings on the senior secured first-lien term loan B and term loan B1 due 2027 and the senior secured multicurrency revolving credit facility due 2025.

The agency also lowered Cobham’s corporate family rating to B3 from B2 and its probability of default rating to B3-PD from B2-PD.

Moody’s noted the downgrades reflect Cobham's lack of Moody's-adjusted free cash flow generation, compounded by rising interest rates, its Moody’s adjusted leverage of 9.5x and the timing of any material deleveraging from asset sales.

Additionally, Cobham is buying Ultra Electronics' specialized radio frequency business in March in a debt-funded deal.

The outlook remains stable.

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