Moody's downgrades Carestream second-lien loans

Moody's Investors Service said it affirmed Carestream Health, Inc.'s corporate family rating at B3 and probability of default rating at B3-PD.

Moody's also said it affirmed the company's B1 first-lien secured debt rating and downgraded the second-lien secured debt rating to Caa2 from Caa1.

The outlook remains negative.

The downgrade follows news that the company is proceeding with an 'amend and extend' transaction for its existing first- and second-lien credit facilities, Moody's explained.

The company will extend the maturity of both its $127.5 million revolving credit facility and up to $720 million of its first-lien term loan to February 2021, the agency said.

Carestream will also be extending the maturity of its $372 million second-lien term loan to June 2021, Moody's said.

The extension is considered a credit positive as it will lengthen the company's maturity profile, the agency said.

The outlook remains negative, reflecting the elevated headwinds from trade tariffs, which will increase the company's overall costs, Moody's said.

The ratings also reflect the company's significant reliance on its film business, which comprises the majority of earnings, the agency said.

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