Moody's trims American Teleconferencing

Moody's said it downgraded American Teleconferencing Services, Ltd.'s corporate family rating to Caa1 from B3, its probability of default rating to Caa1-PD from B3-PD and the rating for its first-lien credit facilities to B3 from B2.

The outlook is negative.

ATS is a wholly owned subsidiary of Premiere Global Services, Inc., which is owned by affiliates of Siris Capital Group, LLC.

On Oct. 3, PGi reported that it received a $25 million equity contribution to shore up its liquidity and appointed a new CEO. The company is also in the process of selling a non-core asset.

“Despite the capital contribution, the downgrade reflects Moody's expectation for weak liquidity over the next 12 months, including limited, if any, cushion under the leverage covenant, limited availability under its revolving line of credit, and weak free cash flow that will be insufficient to fund mandatory term loan payments and earn-outs over the next 12 months,” Moody’s said in a news release.

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