Moody's drops United Subcontractors to Caa1

Moody's Investors Service said it lowered and kept on review for downgrade United Subcontractors, Inc.'s corporate family rating to Caa1 from B3 and $295 million first-lien term loan due 2012 and $40 million revolving credit facility due 2011 to Caa1 (LGD4, 60%) from B2 (LGD3, 42%).

The agency affirmed the $65 million second-lien term loan due 2013 at Caa2 (LGD6, 96% from 92%).

Moody's said the downgrade is prompted by concerns related to the homebuilding contraction on the company's liquidity and projected cash flow generation.

United Subcontractor's financial and operating performance is expected to remain under significant pressure until there is a rebound in new home starts in the company's primary operating regions, according to the agency.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.