Moody's downgrades Fedders

Moody's Investors Service said it downgraded Fedders North America, Inc.'s corporate family rating to Ca from Caa1, its probability-of-default rating to D from Caa1 and its senior subordinated notes to C (LGD5, 73%) from Caa2.

The outlook is negative.

The agency said the downgrade results from the recent announcement that Fedders filed for Chapter 11 bankruptcy. The company will seek strategic alternatives including a sale of its business units.

The non-North American operations were not included in the filing, Moody's noted. These subsidiaries will continue their business operations without supervision from the U.S. courts and will not be subject to the Chapter 11 requirements of the U.S. Bankruptcy Code.

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