Moody’s downgrades AVSC

Moody’s Investors Service said it downgraded AVSC Holding Corp.’s corporate family rating to Caa3 from Caa2 and its probability of default rating from Caa3-PD from Caa2-PD.

At the same time, Moody’s also downgraded the company’s first-lien senior secured credit facility (revolver and term loan) to Caa3 from Caa2 and confirmed the second-lien term loan rating at Ca.

The agency changed the outlook to negative from rating under review. This action concludes the review for downgrade initiated on March 27, Moody’s said.

“The downgrade to Caa3 CFR and negative outlook reflects extremely challenging conditions in the meeting and events industry due to the Covid-19 pandemic, uncertainties when global travel restrictions will be lifted, and containment measures eased and Moody’s expectation for prolonged industry recovery. Despite the company’s actions to right-size the cost structure to combat the effects of the coronavirus, the largely shut-down global meeting and events business has left the company with a highly levered and unsustainable capital structure,” Moody’s said in a press release.

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