Moody’s cuts TwentyEight, facility

Moody's Investors Service said it downgraded TwentyEighty, Inc.'s corporate family rating to Caa3 from B3, probability of default rating to Caa3-PD from B3-PD and first-lien credit facility to Caa2 from B2.

The outlook is negative.

Moody’s said the downgrade reflects TwentyEighty's weak operating performance, deteriorating liquidity and heightened probability of a debt restructuring.

The agency views the company's highly leveraged capital structure as unsustainable over the intermediate-term and anticipates that it will have to be addressed, creating elevated default risk. Given these concerns, Moody's also believes that the company has limited financial flexibility to execute a meaningful operational turnaround in the context of continued EBITDA declines, execution challenges in integrating past acquisitions and Moody's expectation for negative free cash flow generation over the next 12 to 18 months.

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