Moody’s flips Accuride view to negative

Moody's Investors Service said it changed Accuride Corp.'s outlook to negative from positive and affirmed its ratings, including its corporate family rating at Caa2, probability of default rating at Caa2-PD and senior secured first-lien term loan rating at Caa2.

“The negative outlook reflects Accuride's significant refinancing risk and weak liquidity with the company's entire capital structure coming due in the next 12 to 15 months. Moody's expects financial leverage will remain high and free cash flow will be negative even though Accuride's operating performance will improve through 2023 from steady commercial vehicle production and completed restructuring of its European operations,” the agency said in a press release.

Because refinancing Accuride’s asset-based lending facility due Aug. 2023 and first-lien term loan due November 2023 may be difficult, Moody’s said it sees the risk of a debt restructuring or a distressed exchange as elevated.

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