Moody's might downgrade API

Moody's Investors Service said it placed all ratings of API Technologies, Inc. under review for possible downgrade.

Concurrently, the company's speculative grade liquidity rating has been lowered to SGL-4 from SGL-3, denoting a weak, rather than an adequate, liquidity profile.

Moody's said the review and lower speculative grade liquidity rating reflect recent and projected performance against the financial ratio covenant test step-downs that are scheduled under API's $185 million first-lien credit facility.

The B2 corporate family and instrument ratings assumed ongoing compliance with debt agreements and orderly revolver access as API completes its business integration and operational restructuring plans, Moody's said.

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