Moody's lowers Cleaver-Brooks view to negative

Moody's Investors Service said it changed the outlook for Cleaver-Brooks, Inc. to negative from stable.

Moody's also said it affirmed the company's B2 corporate family and probability of default ratings and the B2 (LGD 4, 55%) rating on the $185 million senior secured note.

Moody's does not rate the company's $40 million ABL revolver.

The change in outlook reflects the reduced liquidity profile and the margin pressure, the agency said.

The ratings continue to consider the company's leading market position as a full service provider of packaged boilers and heating applications in commercial and industrial installations, Moody's said.

The negative outlook reflects the weakened liquidity and margin pressure arising from the high raw material prices, particularly steel, the agency said.

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