Moody's cuts Unifi

Moody's Investors Service said it downgraded the ratings of Unifi, Inc.'s senior secured notes to Caa2 from Caa1 and lowered the company's corporate family rating to Caa1 from B3.

Concurrently, Moody's said it changed the outlook to negative, adding that the downgrade reflects ongoing uncertainty with respect to the company's implementation of its business strategy, which includes consolidating U.S. synthetic yarn production, shortfalls in Unifi's financial results relative to Moody's expectations and Unifi's weakening liquidity position.

In Moody's opinion, management turnover during the year added to the increased business risk which is incorporated in the ratings and outlook..

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