Moody’s downgrades Bridon, loans

Moody's Investors Service said it lowered the corporate family and probability of default ratings of Bridge HoldCo 4 Ltd., the ultimate holding company for Bridon, to Caa1 and Caa1-PD from B3 and B3-PD, respectively.

The agency also lowered the ratings on the $286 million senior secured first-lien term loan and $40 million senior secured revolving credit facility to B3 from B2 and the $111 million senior secured second-lien term loan of Bridge Finco LLC to Caa3 from Caa2.

The outlook is negative.

"The downgrade reflects a materially weaker than expected operating performance over the past few months driven by a severe downturn in demand for ropes from the oil and gas industry," Anke Rindermann, Moody's associate managing director and lead analyst for Bridon, said in a news release.

"Owing to the significant decline in operating profit, Bridon's leverage will likely increase to levels above our prior expectation and above the allowed maximum for full access to its revolving credit facility (RCF) over the next few quarters, although we understand from management that the 30% unrestricted portion of the RCF is deemed to be sufficient at this point."

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