Moody’s downgrades Drive Chassis

Moody’s Investors Service said it downgraded the corporate family and probability of default ratings of Drive Chassis HoldCo, LLC to B3 and B3-PD from B2 and B2-PD, respectively, and confirmed the Caa1 secured second-lien debt rating. The outlook is negative.

This concludes the review for downgrade started on March 26, Moody’s said.

“The downgrade of the CFR to B3 reflects Drive Chassis’ very elevated financial leverage due in part to a material decrease in chassis usage amid an economic contraction ensuing from efforts to contain the coronavirus outbreak,” Moody’s said in a press release.

The outlook reflects Moody’s expectation leverage will remain very elevated because of materially lower intermodal container volumes amid a contraction in the U.S. economy, the agency said.

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