Moody's downgrades TriMas

Moody's Investors Service said it downgraded TriMas Corp.'s corporate family and probability-of-default ratings to B3 from B2, senior secured bank credit facility to B1 (LGD2, 26%) from Ba3 (LGD2, 23%), senior subordinated bonds to Caa2 (LGD5, 80%) from Caa1 (LGD5, 77%) and speculative-grade liquidity rating to SGL-4 from SGL-3.

The outlook was changed to negative from stable.

The agency said the downgrade reflects the company's operating performance and weak credit metrics resulting from the ongoing pressure on its revenues, end-market demand, reduced profitability and weak liquidity. It also reflects Moody's view that the company's liquidity is weak as a result of low levels of cash and reduced revolver access due to tightening covenants.

Moody's said the outlook is negative because of the weakness in TriMas' projected credit metrics and because it believes the company may be challenged in its ability to meet its minimum covenant levels.

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