Moody's lowers Human Touch

Moody's Investors Service said it downgraded Human Touch LLC's corporate family rating to Ca from Caa3, probability-of-default rating to Ca from Caa2 and senior unsecured notes to C (LGD5, 80%) from Caa3 (LGD5, 79%).

The outlook is negative. The SGL-4 speculative grade liquidity rating was affirmed.

The downgrades reflect the increased probability of Human Touch defaulting on its obligations over the next 12 months, as the company continues to suffer from precipitous declines in revenue and profitability due to a sharp drop in discretionary consumer spending, according to the agency.

Ratings also reflect the view for below-average recovery in a default scenario, the agency said, as well as weak liquidity.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.