Moody’s trims Springs Windows

Moody's Investors Service said it downgraded the ratings of SWF Holdings I Corp.'s (Springs Windows) including its corporate family rating to Caa1 from B3, its probability of default rating to Caa1-PD from B3-PD, the ratings on the company's first-lien bank credit facilities to B3 from B2, and the rating on the company's $625 million of senior unsecured notes due 2029 to Caa3 from Caa2. The first-lien facilities consist of a $125 million first-lien revolver due 2026 and a $1.625 billion original principal amount first-lien term loan due 2028.

The outlook is negative.

"The rating downgrades and negative outlook reflects Springs Windows' ongoing margin pressures combined with its very high financial leverage and high-interest burden that results in negative free cash flow and an unsustainable capital structure at current earnings level," said Oliver Alcantara, a Moody’s vice president and senior analyst, in a press release.

"Declining volumes and weakening demand trends will make it challenging to meaningfully improve revenue, the profit margin and cash flows over the next 12 months," Alcantara added.

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