Moody’s nicks Oregon Tool

Moody's Investor Service said it downgraded Oregon Tool Holdings, Inc.'s ratings including its corporate family rating to Caa1 from B3 and its probability of default rating to Caa1-PD from B3-PD. Moody's also downgraded the senior secured bank credit facilities to B3 from B2 and senior unsecured notes to Caa3 from Caa2.

"The downgrade reflects our expectations for volume declines in the forestry, lawn, and garden (FLAG) segment in 2023. Reduced demand for power equipment will lead retailers and OEM customers to lower inventory levels through at least the first half of 2023," said Justin Remsen, a Moody's assistant vice president and analyst, in a press release.

Moody's said it forecasts Oregon Tool’s adjusted debt/EBITDA to be maintained at or above 10x through 2023.

The outlook remains negative.

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