Moody's lowers Franklin Energy

Moody's Investors Service said it downgraded KAMC Holdings, Inc.’s (Franklin Energy) ratings, including its corporate family rating to B3 from B2 and its probability of default rating to B3-PD from B2-PD.

At the same time, Moody's downgraded the ratings on Franklin's first- and second-lien senior secured credit facilities to B2 from B1 and to Caa2 from Caa1, respectively.

"The downgrade of Franklin Energy's ratings is driven by the challenges brought on by the coronavirus outbreak that has paused on-site energy efficiency program work," said Andrew MacDonald, Moody's lead analyst on the company, in a press release.

"The negative outlook reflects that the company's liquidity will weaken during the near term and that credit metrics could deteriorate rapidly, at least in the short term, until the company is able to resume field services," he said.

The outlook is negative.

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