Moody's alters Sabert view to negative

Moody's Investors Service said it changed Sabert Corp.'s outlook to negative from stable and affirmed its B2 corporate family rating, its B2-PD probability of default rating and its B2 senior secured term loan rating.

"The negative outlook reflects our expectation that Sabert continues to face challenges to generate free cash flow for the next 12-18 months given higher capital spending and working capital needs," said Motoki Yanase, a Moody’s vice president and senior credit officer.

"With a high level of oil and natural gas prices, resin prices for the next 12-18 months also remain uncertain, which may create time lag for the company to pass through higher costs," added Yanase.

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