Moody's confirms Mattress Holdings

Moody's Investors Service said it confirmed Mattress Holding Corp.'s Caa1 corporate family rating and changed its probability of default rating to Caa1/LD.

The outlook is negative.

The agency said that these actions conclude the review for possible downgrade that began on Feb. 20.

The confirmation reflects Moody's expectation that the company's performance will stabilize at weaker levels in this difficult economic environment, and that various cost containment actions will result in positive free cash flow generation over the next 12 months, the agency said.

According to Moody's, the company's credit metrics are expected to remain weak, but within expectations for the current rating.

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