Moody's trims Mold-Rite

Moody's Investors Service said it downgraded Valcour Packaging LLC's (Mold-Rite Plastics LLC) corporate family rating to Caa1 from B3, probability of default rating to Caa1-PD from B3-PD and Mold-Rite's first lien and second-lien term loans to B3 from B2 and Caa3 from Caa2, respectively.

"Leverage remains very high, as lower overall volumes and shipments of a less sophisticated product mix due to elevated system-wide inventory have negatively impacted cash flow. In addition, the rise in interest rates has materially increased the debt service cost of the company's floating rate debt, resulting in weakened interest coverage.

“A return to more normalized business conditions is necessary for Mold-Rite to enhance cash flow generation and credit metrics. While we are anticipating an inflection to improved market conditions in the back half of 2023, the cadence to which this occurs is uncertain," said Scott Manduca, vice president at Moody's, in a press release.

The outlook is 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.