Moody’s cuts Blackboard, facilities, notes

Moody's Investors Service said it downgraded Blackboard Inc.'s corporate family rating by two notches to Caa1 from B2, as well as its probability of default rating to Caa1-PD from B2-PD.

The agency also downgraded Blackboard's $135 million first-lien revolving credit facility and $920 million (remaining balance) first-lien term loan to B3 from B1 and $378 million second-lien notes to Caa3 from Caa1.

The outlook was changed to stable from negative.

Moody’s said the downgrade of the corporate family rating reflects weak free cash flow, strained liquidity and very high debt-to-EBITDA leverage (including Moody's standard adjustments), which the agency expects will remain above 8 times through 2018.

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