Moody's lowers Columbus, notes to B3

Moody's Investors Service said it downgraded Columbus International Inc. and its $640 million in global notes to B3 from B2 given the company's weakened liquidity and aggressive financial management of near-term debt maturities.

The ratings were placed on review for further downgrade.

Moody's said the downgrade was based on the company's inability to delever and persistent negative free cash flow. The aggressive timeline for the company to refinance $640 million in debt maturing in November 2014 increases Columbus' liquidity risk and was a driver of the further ratings review.

While Moody's recognizes that the company is seeking to reduce the breakage costs associated with the refinancing of the notes, waiting too close to the maturity date exposes it to significantly higher market and interest rate risks.

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