Moody's downgrades W3

Moody's Investors Service said it downgraded W3 Co.’s corporate family rating to Caa1 from B3, probability of default rating to Caa1-PD from B3-PD, senior secured first-lien revolver and term loan to B3 (LGD3) from B2 (LGD3) and senior secured second-lien term loan due 2020 to Caa3 (LGD5) from Caa2 (LGD5). The outlook has been changed to negative from stable. W3 is a holding company of Total Safety U.S., Inc.

The agency said the downgrade is in response to deterioration in the company's operating performance as challenges persist in the oil and gas sector in which Total Safety provides services.

The negative outlook incorporates Moody's concerns that Total Safety's liquidity condition may not improve through 2015 and that the company would not be able to restore adequate availability under its revolver to support potential cash shortfalls in operations.

© 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.