Moody’s cuts ASM Global

Moody’s Investors Service said it downgraded SMG US Midco 2, Inc.’s (ASM Global) ratings, including its corporate family rating to Caa1 from B3, probability of default rating to Caa1-PD from B3-PD and first-lien term loan rating to Caa1 from B3.

Concurrently, Moody’s downgraded the instrument ratings on SMG Holdings, LLC’s revolver to Caa1 from B3. The outlook remains negative.

“The downgrade of the CFR reflects expectations that the coronavirus pandemic will drive continued deterioration in the company’s financial results and credit metrics due to suspension of events at least through the first half of 2021. The effects of the coronavirus pandemic have continued to last longer than was anticipated in March of this year, and, as a result, deterioration in the financial condition of the company has continued,” the agency said in a press release.

However, Moody’s noted ASM’s liquidity position at June 30 was $289 million, which the agency sees as “adequate through the current disruptive period.

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