Moody's trims Radio Systems

Moody's Investors Service said it downgraded CD&R Smokey Buyer, Inc.'s (Radio Systems Corp.) ratings including its corporate family rating to B3 from B2, its probability of default rating to B3-PD from B2-PD, the rating on the company's $700 million senior secured first-lien notes due 2025 to B3 from B2, and the $75 million original principal amount senior secured first-lien term loan due 2025 to B3 from B2.

“Today's ratings downgrade reflects Radio Systems' high financial leverage due to weaker operating results and higher debt balance, and its reduced liquidity due to sizable revolver borrowings, amid a weakening demand environment. The company reported a year-over-year revenue decline of -2.4% for the year-to-date period through 3Q 2022, and its profitability was materially lower with company-adjusted EBITDA declining -25% over the same period,” Moody’s said in a press release.

The agency noted Radio Systems’ debt/EBITDA leverage is high at around 7.8x for the last 12 months period ending Sept., up from 6.2x at the end of fiscal 2021.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.