Moody's lowers Rinker Boat

Moody's Investors Service said it downgraded the ratings of Rinker Boat Co. based on its continuing moderating operating performance as a result of the worse than anticipated downturn in the marine industry and violation of financial covenants in the LTM ended June.

At the same time, Moody's said it placed Rinker's ratings on review for possible further downgrade pending completion of an amendment to revise the covenants under its bank credit facilities.

"The downgrade reflects our concerns that the company's modest operating performance will linger as the marine industry cyclical downturn continues." said Kevin Cassidy, vice president/senior credit officer at Moody's.

Cassidy further noted that "the downgrade incorporates the company's inability to comply with certain financial covenants, which were amended in August 2006."

The following ratings/assessments were downgraded: corporate family rating to Caa1 from B3, probability of default rating at Caa1 from B3, senior secured term loan to B3 (LGD 3, 40%) from B2 (LGD 3, 40%) and revolving credit facility to B3 (LGD 3, 40%) from B2 (LGD 3, 40%).

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