Moody’s cuts CPI Card, facilities

Moody's Investors Service said it downgraded CPI Card Group Inc.’s corporate family rating to Caa1 from B3 and probability of default rating to Caa1-PD from B3-PD.

Additionally, the agency downgraded the ratings for the senior secured first-lien credit facilities of CPI Acquisition, Inc. (the debt-issuing subsidiary of CPI) to Caa1 from B3.

The speculative grade liquidity rating was downgraded to SGL-4 from SGL-3.

The outlook is negative.

“The downgrades broadly reflect continued uncertainty about whether CPI can return to revenue and profit growth over the next 12-18 months, and an earnings and cash flow profile that can adequately support the company's heavy debt burden,” Moody’s said in a news release.

“Results at December 31, 2017 suggested declines in market share and showed continued declines in pricing per EMV card.”

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.