Moody’s might lower TriMas

Moody's Investors Service said it placed the ratings of TriMas Corp., including its Ba2 corporate family rating and Ba2 senior secured ratings, under review for possible downgrade.

The review follows the company's announcement that it intends to separate its business into two independent publicly traded companies comprised of "New TriMas," which will continue to focus on the company's packaging, aerospace, energy and engineered components segments, and "Cequent," which will be comprised of TriMas' existing Cequent Americas and Cequent APEA segments which manufacture and sell towing, trailer and cargo management products to various end markets.

Moody’s said the review will consider the meaningful reduction in TriMas' size after the spinoff along with the potential for improved margins with increased focus on the higher growth areas such as packaging and aerospace, including the recent acquisition of Allfast Fastening Systems.

The review will also consider the company's pro forma capitalization and its stand-alone earnings and cash flow generating capabilities, the agency said. The transaction is expected to be completed by mid 2015.

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