Moody's downgrades Jacuzzi

Moody's Investors Service said it downgraded Jacuzzi Brands Corp.'s corporate family rating to Ca from Caa2 and probability-of-default rating to Ca-PD from Caa2-PD.

The agency also downgraded the ratings on the $170 million senior secured credit facility and $15 million synthetic letter-of-credit facility to Ca (LGD3, 48%) from Caa2 (LGD3, 49%).

The outlook is developing.

The actions reflect Jacuzzi's approaching 2013 and 2014 maturities, and the expectation that given leverage of over 10 times as of Sept. 29, the company's refinancing will necessitate a debt restructuring, according to Moody's.

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