Moody’s cuts 4L Technologies

Moody's Investors Service said it downgraded its ratings for 4L Technologies Inc, including the company's corporate family rating to Caa3 from B3 and the probability of default rating to Caa3-PD from B3-PD, and the rating for 4L Tech's senior secured first-lien term loan to Caa3 from B3.

The outlook was revised to negative from stable.

“The downgrade reflects the likelihood of a default is high given the recent downward revision in earnings guidance following the loss of business and pricing pressure in both the imaging and wireless segments combined with the maturity of the first-lien term loan in May 2020 that will put pressure on the business,” Moody's analyst Andrew MacDonald said in a news release.

“The company's hiring of restructuring advisors, request to meet with lenders in a few weeks, and challenges refinancing the term loan indicate a restructuring will occur soon.”

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