Moody's may lower aaiPharma

Moody's Investors Service said it placed the debt ratings of aaiPharma Inc. under review for possible downgrade.

This rating action follows the company's board of director's announcement that it has become aware of unusual sales in two product lines during the second half of 2003 and that these matters will materially affect aaiPharma's previously announced guidance for the first quarter and full year of 2004.

The company also reported that it is withdrawing its guidance for these periods and that these matters may, depending on the results of the inquiry, require an adjustment to the 2003 financial results.

Ratings affected include the company's B2 rated $156 million guaranteed senior term loan due 2009; Caa1 rated $175 million guaranteed senior subordinated notes due 2013; B2 rated $100 million (increased from $75 million) guaranteed senior secured revolver due 2007, the company's B2 senior implied rating and B3 senior unsecured issuer rating.

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