Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers Z > Headlines for Zest Dental Solutions > News item |
Moody's lowers Zest view to negative
Moody's Investors Service said it revised Zest Acquisition Corp.'s (Zest Dental Solutions) outlook to negative from stable.
Moody's also said it affirmed the company's corporate family rating at B3, probability of default rating at B3-PD, first-lien secured rating at B2 (LGD 3) and second-lien secured rating at Caa2 (LGD 5).
The outlook revision reflects declines in sales of the company's main product lines, Moody's said.
The decline in sales relates to destocking by Zest's large customers, which are generally the large dental implant manufacturers, the agency explained.
Moody's said it believes the destocking is largely a result of customer-specific restructuring actions, not a decline in fundamental demand for Zest's products.
As a result of lower sales and lost operating leverage, Zest's EBITDA has declined more than sales, the agency noted.
The negative outlook considers the uncertainty associated with a recovery in sales and earnings until customer buying patterns normalize, Moody's 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.