Moody's cuts RathGibson

Moody's Investors Service said it lowered RathGibson Inc.'s ratings, including the corporate family rating and probability of default ratings, which were lowered to Ca from Caa2.

The outlook is negative.

Simultaneously, Moody's said it affirmed the SGL-4 speculative-grade liquidity rating.

The agency added that these actions follow the company's disclosure of weaker than expected first quarter performance combined with a pronounced deterioration in its liquidity profile.

The Ca corporate family rating reflects Moody's opinion that RathGibson will likely require significant operational and/or financial restructuring over the near term to respond to the continued, substantial weakening in its end markets amidst an overlevered capital structure, the agency noted.

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