Moody’s moves CNG outlook to negative

Moody's Investors Service said it affirmed CNG Holdings, Inc.'s Caa1 corporate family and senior secured ratings and changed the outlook to negative from stable.

The affirmation and outlook revision follow the company's announcement on July 18 of an exchange offer for its $228 million of senior secured bonds. Moody's views a meaningful amount of debt repurchased at a substantial discount to be a distressed exchange and a limited default.

“The negative outlook reflects the considerable uncertainty regarding the firm's ability to achieve profitability and a sustainable capital structure over the next 12-18 months, along with Moody's expectation of continued weak finance performance,” the agency said in a press release.

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