Moody's downgrades Edwards

Moody's Investors Service said it downgraded Edwards Group Ltd. corporate family rating to B3 from B1, Edwards (Cayman Island II) Ltd.'s $100 million super-priority revolver to Ba3 from Ba1, $430 million first-lien term loan to B3 from B1 and $185 million second-lien pay-in-kind toggle loan to Caa2 from B3.

The outlook is stable.

The action was triggered by the severe downturn in Edwards' key end markets coupled with adverse foreign exchange movements, according to the agency.

"Following the spinoff from Linde/BOC Edwards has successfully diversified its customer end markets," Oliver Giani, a senior analyst at Moody's, said in a statement.

"Sales to the solar and flat panel display industry allowed the company to largely compensate the cyclical downturn in the semiconductor industry during 2008. However, in the last quarter of 2008 it became clear that theses markets are increasingly affected by the global economic downturn. For 2009 Moody's expects a material revenue decline severely reducing operating profit and cash flow coverage."

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