Moody’s lowers WP CPP, facilities

Moody's Investors Service said it downgraded WP CPP Holdings, LLC’s corporate family rating to B3 from B2, probability of default rating to B3-PD from B2-PD, senior secured first-lien revolver and term loan facility to B2 from B1 and senior secured second-lien term loan to Caa2 from Caa1.

The outlook remains negative.

Moody’s said the downgrade reflects continued topline and earnings pressures driven by increased competition in industrial gas turbine (IGTs) aftermarkets and business jets as well as higher start-up costs relating to new business wins. These headwinds are expected to continue to weigh on WP CPP's financial performance through at least the first half of 2017.

The downgrade also reflects the company's weak liquidity profile which is characterized by negative free cash flow, tightening financial covenants and a reliance on external sources of funding, the agency added.

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