Moody’s drops Consolidated Aerospace, loans to B3

Moody's Investors Service said it downgraded Consolidated Aerospace Manufacturing, LLC’s corporate family rating to B3 from B2, probability of default rating to Caa1-PD from B3-PD and senior secured revolving and term loan facilities to B3 from B2.

The outlook is negative.

Moody’s said the downgrade reflects continued topline pressures and a weakening earnings profile due to internal execution issues, pricing pressure from large customers and inventory destocking.

The combination of these factors has resulted in pronounced earnings pressures, an across-the-board softening of credit metrics and elevated leverage levels, the agency added.

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