Moody’s lowers Ahern Rentals

Moody’s Investors Service said it downgraded Ahern Rentals Inc., including the company’s corporate family rating to Caa1 from B3, the probability of default rating to Caa1-PD from B3-PD, and the senior secured second-lien notes rating to Caa2 from Caa1.

The outlook is negative.

This action concludes the review for downgrade started March 25, Moody’s said.

“The downgrade of Ahern’s ratings reflects Moody’s view that the company’s liquidity is weak, while at the same time equipment utilization is under pressure and the business outlook is highly uncertain. Absent sustained improvement over the next year, especially in Las Vegas, California and Texas, where the company generates nearly half of its total annual revenue, we believe financial flexibility will become very limited,” said Brian Silver, a Moody’s vice president and lead analyst for Ahern Rentals, in a press release.

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