Moody’s cuts TurboCombustor, loans to B3

Moody's Investors Service said it downgraded the ratings of TurboCombustor Technologies, Inc. (doing business as Paradigm Precision), including the corporate family rating to B3 from B2, probability of default rating to Caa1-PD from B2-PD and the senior secured rating to B3 from B2, reflecting the weakening liquidity and earning profile.

The outlook was revised to negative from stable.

Moody’s said the downgrade reflects levels of cash flow generation that continue to trail expectations coupled with recent weakness in operating performance that has led to a further tightening on an already strained cash flow profile.

The agency anticipates negative free cash flow for 2015 (estimated to range from minus $5 million to minus $15 million for 2015) and earnings headwinds that will lead to a weakening of credit metrics over the balance of the year.

The company's ability to stabilize and more effectively manage working capital levels while improving overall cash flow generation will be critical rating considerations over the next 12 months, Moody’s said.

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