Moody’s lowers Triple Point

Moody's Investors Service said it downgraded Triple Point Group Holdings, Inc.'s corporate family rating to Caa2 from Caa1, probability of default rating to Caa2-PD from Caa1-PD and senior secured first-lien revolving credit facility and term loan ratings to Caa1 from B3.

The senior secured second-lien term loan rating of Caa3 was affirmed.

The outlook was changed to negative from stable.

The agency said the downgrade with a negative outlook reflects expectations that absent additional cash infusions or debt retirement by ION, the risk of a distressed exchange or other event of default remains heightened.

Moody’s said that due to ongoing challenges in stemming revenue and profit declines, it expects Triple Point will be unable to extend or refinance its revolver past the July 2018 maturity date and that further equity may be required to repay the first-lien term loan when due in July 2020.

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