Moody's downgrades Vertiv

Moody's Investors Service said it downgraded the ratings of Vertiv Intermediate Holding Corp., including the corporate family rating to Caa1 from B3, probability of default rating to Caa1-PD from B3-PD and the payment-in-kind global notes due 2022 to Caa3 from Caa2.

Moody's also downgraded Vertiv Group Corp.'s senior secured term loan rating to B2 from B1 and the senior unsecured rating to Caa2 from Caa1.

The outlook remains negative.

The ratings reflect expectations for a further weakening in the company's financial profile through 2020 due to continued negative free cash flow during much of this period, the agency said.

This will further stress the company's liquidity position, Moody's said.

While the company reported revenue growth and earnings improvement starting in late 2018 with prospects for further growth in 2019 on stronger backlogs, free cash flow continues to be substantially negative due to costs associated with corporate restructuring, investment in working capital and capital expenditure, as well as payment of sizable cash interest on $500 million of holding compay notes over this period, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.