Moody’s cuts Briggs & Stratton

Moody’s Investors Service said it downgraded Briggs & Stratton Corp.’s probability of default rating to D-PD from Ca-PD following the company’s July 20 announcement it filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code.

Moody’s also downgraded the company’s corporate family rating to Ca from Caa3 and the senior unsecured debt rating to C from Ca. The speculative grade liquidity rating remains SGL-4. The agency changed the outlook to stable from negative.

“The downgrades reflect Briggs & Stratton’s substantial earnings decline and inability to generate positive annual free cash flow which, exacerbated by the coronavirus outbreak, accelerated the company’s missed interest payment and ultimately, bankruptcy filing,” said, Gigi Adamo, a Moody’s vice president, in a press release.

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