Moody’s downgrades Armor

Moody’s Investors Service said it downgraded Armor Holdco, Inc.’s corporate family rating to Caa1 from B3 and downgraded to B2 from B1 Armor Holding II LLC’s $405 million senior secured first-lien term loan due June 2022 and $20 million senior secured first-lien revolving credit facility. Moody’s also downgraded to Caa3 from Caa2 Armor II’s $215 million senior secured second-lien term loan due July 2023.

“Moody’s said the ratings’ downgrades reflect revenue challenges stemming from the deteriorating macroeconomic environment which will further weaken Armor’s debt leverage, liquidity and debt servicing capacity in the near term. In addition to lower interest income, as a result of the recent Federal Reserve Board (Fed) cut to the fed funds rate to its new range of 0%-0.25%, weaker capital markets activities, such as mergers and acquisition and initial public offerings, will lower Armor’s fee income in 2020,” said Moody’s in a press release.

The outlook remains negative.

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