Moody's: AmeriQual outlook negative

Moody's Investors Service said it changed the outlook of AmeriQual Group, LLC to negative from stable and affirmed its B3 corporate family rating, $105 million 9% second-lien notes at Caa1 (LGD4, 66% from 64%) and the SGL-3 speculative grade liquidity rating.

The outlook change reflects lower sales and profitability expected in 2009, versus 2008, from some slightly weaker orders and weaker commercial product sales, according to the agency.

The affirmation reflects the company's small size, high dependence on orders from the U.S. Department of Defense, adequate liquidity profile and leveraged capital structure, Moody's said.

The affirmation considers AmeriQual's ability to control its costs and working capital uses, the agency said.

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