Moody’s lowers Emeco, notes, loan

Moody's Investors Service said it downgraded the corporate family rating of Emeco Holdings Ltd. to B2 from B1.

At the same time, the agency downgraded the rating on the $335 million senior secured notes due 2019 issued by Emeco Pty. Ltd. to B2 from Ba3 and the rating on the A$50 million three-year senior secured revolving credit facility to Ba2 from Ba1.

The outlooks are stable.

"The ratings downgrades reflect our expectation that continued weakness in the mining services sector will pressure Emeco's earnings into the fiscal year ending June 2015 (FY2015) beyond our expectation,” Moody's analyst Saranga Ranasinghe said in a news release, adding, "as a result, Emeco's financial profile will no longer be consistent with the previous B1 corporate family rating,"

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