Moody's lowers GI DI Orion

Moody's Ratings said it downgraded GI DI Orion Parent LP's corporate family rating to Caa1 from B3 and probability of default rating to Caa1-PD from B3-PD and changed the outlook to stable from negative. Moody's also downgraded the senior secured first-lien revolving credit facility and senior secured first-lien term loan ratings of GI DI Orion's main operating company, Orbcomm Inc., to Caa1 from B3, and changed its outlook to stable from negative.

"The downgrade reflects the company's weak operating performance, which has pressured liquidity and kept financial leverage elevated for longer than we expected," said Peter Adu, a Moody's vice president and senior credit officer, in a press release.

GI DI Orion’s debt/EBITDA clings above 10x though it benefits from its good market position, Moody’s noted.

The improved outlook reflects a forecast for good demand and a pipeline of opportunities that will push EBITDA and allow debt/EBITDA to be sustained around 7.5x by the end of 2025,” Moody’s said.

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