Moody’s cuts Unifrax, loans, notes

Moody's Investors Service said it downgraded Unifrax I LLC’s corporate family rating to B3 from B2, probability of default rating to B3-PD from B2-PD, senior secured bank credit facilities to B2 from B1 and senior unsecured notes to Caa2 from Caa1.

The outlook was changed to stable.

"The downgrade reflects uncertainty over the ability of management to significantly increase profitability from the initiated cost cuts amid further declines in key thermal management end markets, as well as the company's reduced financial flexibility due to limited availability on its revolver," Moody's analyst Anastasija Johnson said in a news release.

"While the company has increased cash balances to maintain adequate liquidity, this situation will prevent the company from reducing debt after its investment in a Chinese ceramic fiber producer."

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