Moody’s cuts Longview Intermediate to negative

Moody's Investors Service said it changed the outlook on Longview Intermediate Holdings C, LLC's secured debt to negative from stable reflecting significantly weaker financial performance compounded by the recent challenges at its mining segment.

Concurrent with the outlook change, the agency affirmed the B2 rating on the roughly $298 million senior secured term loan due 2021 and the $25 million five-year senior secured revolving credit facility due 2020.

Moody’s said the negative outlook acknowledges the greater-than-expected use of existing liquidity during the past year along with the probability for continuing cash shortfalls during 2016 owing to an ongoing period of lower energy prices.

The negative outlook also factors in the challenges facing affiliate Mepco Intermediate Holdings, LLC, the mining segment, which suffered a fatality in January 2016 leading to several lost production days, the agency said.

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