Moody's downgrades Osmose

Moody's Investors Service said it downgraded Osmose Holdings, Inc.'s corporate family rating to B2 from B1, affirmed the B2 probability of default rating and assigned B2 ratings to the company's proposed first-lien senior secured credit facilities.

The outlook is stable.

The actions follow the company's announcement of a proposed dividend recapitalization transaction.

"The dividend recapitalization would increase debt leverage, loosen protective covenants and enable the company to pursue acquisitions more aggressively than contemplated by the existing B1 rating," Moody's analyst Ben Nelson said in a news release.

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