Moody's: Veyance outlook negative

Moody's Investors Service said it changed Veyance Technologies, Inc.'s outlook to negative from stable and affirmed the corporate family and probability-of-default ratings at B2, first-lien senior secured bank credit facility at B1 (LGD3) and second-lien term loan due 2015 at Caa1 (LGD5).

The loss-given-default rate was changed to 36% from 33% for the first-lien facility and to 84% from 82% for the second-lien term loan.

The agency said the change in outlook results from the continued economic pressures that Veyance faces from relatively high and volatile commodity prices as well as operating performance, cash generation and credit metrics that are below Moody's expectations.

Veyance's B2 corporate family rating incorporates the company's solid market position in providing industrial conveyor belts to the mining sector and manufacturing industries, customer and end- market diversity and ample cash balances, Moody's said.

Constraining the rating is the continued volatility in raw material prices and the cyclicality of the industrial and mining sectors, the agency said.

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