Moody’s reviews Garff for downgrade

Moody’s Investors Service said it placed all its ratings of Ken Garff Automotive, LLC on review for downgrade, including the Ba2 corporate family rating.

"Today’s review action reflects Moody’s concern that Garff’s credit metrics, which are already exhibiting stress with respect to downgrade triggers, particularly interest coverage, which is virtually ‘at’ the two times trigger, will undergo more stress during the coronavirus pandemic," stated Charlie O’Shea, Moody’s lead analyst for Garff, in a press release.

"Moody’s review will focus on, among other things, the effectiveness of the levers that Garff has already thrown on the cost front to mitigate the effects of the coronavirus on demand and volumes," O’Shea said.

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