Moody’s downgrades Reconext

Moody's Investors Service said it downgraded 4L Holdings Corp.'s (Reconext) corporate family rating to Caa2 from Caa1, its probability of default rating to Caa2-PD from Caa1-PD, and the senior secured bank credit facility to Caa2 from Caa1.

“The rating downgrades reflect heightened refinancing risk of the company's outstanding facilities, including the ABL revolver due October 2023 and senior secured term loan due February 2024. Should Reconext refinance these maturities on terms that improve the sustainability of the capital structure, Moody's would likely take positive rating actions,” the agency said in a press release.

The outlook is negative.

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