Moody’s lowers Tecta first-lien debt

Moody's Investors Service said it affirmed Tecta America Corp.'s B3 corporate family rating and B3-PD probability of default rating following company's recent announcement that affiliates of Altas Partners are contributing additional equity in the form of common stock instead of issuing originally proposed $100 million second-lien term loan, of which the Caa2 rating was withdrawn.

Moody's also downgraded Tecta's first-lien debt to B3 from B2, since the first-lien debt no longer has more junior obligations that would absorb first losses in a recovery scenario.

Additionally, the first-lien debt now represents the preponderance of debt in Tecta's capital structure, warranting the downgrade, the agency noted.

The outlook is stable.

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