Moody's cuts American Tire Distributors to SGL-3

Moody's Investors Service said it affirmed the B3 corporate family and Caa2 senior unsecured ratings of American Tire Distributors, Inc. (ATD) but changed the outlook to negative.

At the same time, Moody's said it said it lowered the company's speculative-grade liquidity rating to SGL-3 from SGL-2.

Borrowings under the company's $300 million revolving credit facility have increased to support higher working capital investment, leaving reduced amounts of committed external funding capacity, the agency said.

Going forward, rising wholesale tire prices and related working capital investment could lead to increased levels of indebtedness and cause the company to become more reliant upon its revolving credit facility, the agency noted.

© 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.