Moody's lowers Reichhold

Moody's Investors Service said it downgraded Reichhold Industries, Inc.'s corporate family rating and probability of default rating to Caa1 from B2, and the rating on its $195 million senior unsecured notes due 2014 to Caa2 from B3.

The loss given default assessment on the senior notes due 2014 was moved to LGD4 from LGD5 as a result of changes to the company's liability structure, the agency said, noting that the outlook for the company's ratings remains negative.

According to Moody's, the downgrade to a Caa1 corporate family rating reflects very weak fourth- and first-quarter results, combined with the expectation that the difficult market conditions faced by the company in many of its key end markets.

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