Moody's drops Dayton Superior to Caa1

Moody's Investors Service said it downgraded Dayton Superior's corporate family rating to Caa1 from B2 and its $100 million senior secured term loan to B3 (LGD3, 33%) from B1, and lowered its $154 million subordinated notes to Caa3 (LGD5, 83%) from Caa1.

Dayton's probability-of-default rating was downgraded to Caa3 from B2. Ratings were placed on review for downgrade.

The downgrade reflects the company's weak liquidity position due to upcoming debt maturities in the next seven months and slow progress on early refinancing attempts, according to the agency.

The downgrade also reflects the anticipated effect of the economic recession on the company's projected financial performance, Moody's noted.

The downgrade considers the year-over-year improvement in the company's year-to-date financial performance through September but overweighs the high level of uncertainty for the commercial market given that there are already signs of weakening, the agency said.

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