Moody's cuts Reddy Ice

Moody's Investors Service said it lowered Reddy Ice Holdings, Inc.'s corporate family and probability of default ratings to Caa1 from B3 and its $12 million senior discount notes due 2012 to Caa3 from Caa2.

Moody's said it also lowered the rating on Reddy Ice Corp.'s $300 million first-lien senior secured notes due 2015 to B3 from B2 and the $139 million second-lien notes due 2015 to Caa3 from Caa2. The speculative grade liquidity rating was affirmed at SGL-3.

The outlook remains negative.

Moody's said the downgrade reflects its expectation that Reddy Ice's operating performance is unlikely to materially improve over the foreseeable future given the uncertain macro environment and the competitive nature of the U.S. packaged ice industry.

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