Moody's downgrades Rinker Boat

Moody's Investors Service said it downgraded Rinker Boat Co.'s corporate family and probability-of-default ratings to B3 from B2 and its senior secured term loan and revolving credit facility to B2 from B1. The loss-given-default assessment assigned to the loans is unchanged at LGD3 (40%).

The outlook is stable.

The agency said the downgrade reflects the company's moderating operating performance, Moody's concern that this modest operating performance may linger as the marine industry cyclical downturn continues and the agency's view that the company's credit metrics are no longer consistent with a B2 consumer durable company and that Rinker Boat will likely need to amend its credit facility.

The stable outlook reflects the agency's view that the company will likely be able to amend its credit facility under the terms that are currently contemplated.

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