Moody's lowers Carey

Moody's Investors Service said it downgraded Carey International, Inc.'s ratings and placed them on review for further downgrade.

The agency lowered Carey's corporate family and probability-of-default ratings to Caa2 from Caa1, $35 million senior secured first-lien revolving credit facility due 2010 to B2 (LGD2, 21%) from B1 (LGD2, 22%), $80 million senior secured first-lien term loan B facility due 2011 to B2 (LGD2, 21%) from B1 (LGD2, 22%) and $85 million senior secured second-lien term loan facility due 2012 to Caa3 (LGD5, 74%) from Caa2 (LGD5, 74%).

The corporate family rating downgrade reflects the company's tight near-term liquidity position and the uncertainty concerning its ability to meet debt service requirements in an orderly fashion, Moody's said.

The downgrade also reflects weakening margins and rising leverage, the agency said.

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