Moody's drops American Railcar

Moody's Investors Service said it has lowered the ratings of American Railcar Industries, Inc.: corporate family rating to Caa1 from B2 and its probability of default rating to B3 from B2.

The rating of the company's $275 million of senior unsecured notes has been lowered to Caa1 from B3, the agency said.

There is a negative outlook.

Moody's said that American Railcar has a speculative-grade liquidity rating of SGL-2 and the B3 probability of default rating balances the company's good near term liquidity profile against a prolonged weak business outlook for railcars that could cause increasing financial stress for the company over the intermediate term.

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