Moody’s downgrades Cohu, shifts view to negative

Moody’s Investors Service said it downgraded Cohu, Inc.’s ratings, including the corporate family rating to B2 from B1, probability of default rating to B2-PD from B1-PD, and senior secured term loan rating to B2 from B1. The speculative grade liquidity rating is unchanged at SGL-2.

“The downgrade of the CFR reflects weaker than expected financial performance, due primarily to a much deeper than anticipated industry demand cycle, which Moody’s expects will continue over the near term. Moody’s expects revenues and EBITDA margin to remain weak, and for financial leverage to remain very high, over the next 12 months. The downgrade also reflects Moody’s expectation that Cohu will continue to consume cash for at least the remainder of 2019, reducing liquidity,” the agency said in a news release.

Moody’s changed the outlook to negative from stable.

© 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.