Moody's lowers Direct Buy

Moody's Investors Service said it downgraded the corporate family and probability of default ratings of Direct Buy Holdings, Inc. to Caa3 from Caa2 and assigned a negative outlook.

Moody's said the downgrades consider that the company: (a) is in default of a financial covenant related to its revolving credit facility; (b) received a going concern opinion from its auditors; and (c) retained a financial advisor in connection with a debt restructuring.

Moody's said it believes that these events increase the likelihood of a distressed exchange or other recapitalization that would impair creditors.

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