Moody's snips JPW

Moody's Investors Service said it downgraded JPW Industries Holding Corp.'s senior unsecured notes and corporate family rating to Caa1 from B3. The agency also lowered the probability of default rating to Caa1-PD from B3-PD.

"The downgrade reflects refinancing risk with JPW's $280 million notes due October 2024. We anticipate debt capital markets to remain challenging in the near term, increasing the risk of a debt restructuring," said Justin Remsen, a Moody's assistant vice president, in a press release.

"While near-term maturities and softer demand weaken JPW's credit quality, we do expect the company to generate robust free cash flow in 2023 and maintain leverage below 7x over the next 12-18 months," added Remsen.

The outlook is stable.

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