Moody's may cut Allen Systems

Moody's Investors Service said it placed under review for downgrade the B1 corporate family rating, B2 probability-of-default rating and B1 (LGD3, 30%) senior secured loan ratings of Allen Systems Group, Inc.

The agency said the possible downgrade is a result of heightened concerns regarding the company's ability to cure its existing and potential financial and reporting requirement covenant violations related to its bank credit agreement.

The company delayed filing its financial statements for the fiscal year 2007 and first quarter 2008 periods, which triggered a technical default under the company's credit agreement, according to Moody's.

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