Moody’s: UniTek outlook to negative

Moody's Investors Service said it changed UniTek Global Services, Inc.'s outlook to negative from stable.

UniTek's corporate family and probability of default ratings were affirmed at Caa2 and Caa2-PD, respectively.

Concurrently, the Caa2 rating on the company's $135 million term loan due 2018 was affirmed, as was the speculative grade liquidity rating of SGL-4.

Moody’s said the outlook change was driven by the company's lower-than-expected operating performance during the first half of 2014. For the six months ended June 28, the company's Form NT 10-Q filing reported lower expected revenues and "substantially higher" net losses to be reported for the period ended June 28 versus the corresponding period last year.

The company concurrently filed an 8-K stating that both the company's revolving credit and term loan lenders have agreed to forbear from taking action relative to certain existing and future defaults in the company's revolver and term loan agreements, Moody’s said.

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