Moody’s cuts Jason, facilities

Moody's Investors Service said it downgraded Jason Holdings, Inc. I's corporate family rating to Caa1 from B3, probability of default rating to Caa1-PD from B3-PD, first-lien senior secured credit facilities, consisting of a $40 million revolver expiring in 2019 and a $310 million term loan due 2021, to B3 from B2 and $110 million second-lien senior secured term loan due 2022 to Caa3 from Caa2.

The outlook was changed to negative.

The speculative grade liquidity rating remains at SGL-3.

Moody’s said the action was based on continued deterioration in Jason's financial performance partially due to the challenges in its end markets and uncertainty surrounding the company's ability to improve its performance in the near- to medium-term.

“The uncertainty primarily stems from the company's persisting operational challenges across different divisions as well as declining margins in the better performing acoustics division,” the agency said in a news release.

Moody’s projects that Jason's high debt-to-EBITDA leverage (6.2 times last-12-months ending Sept. 30, 2016 incorporating standard adjustments) will increase to above 7 times in the next 12 months.

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