Moody's cuts CLFX

Moody's Investors Service said it downgraded CLFX Corp.'s corporate family and probability-of-default ratings to B1 from Ba3 and senior secured bank credit facility to Ba3 (LGD2, 29%) from Ba1.

The outlook is stable.

The B1 corporate family rating reflects the company's strong brand names, niche market position within the global pump industry and diverse customer base, Moody's said.

The rating action incorporates Moody's expected below-plan operating performance adjusted for asbestos litigation expense and the continued need to improve its free cash flow, Moody's said.

The company's adjusted debt-to-EBITDA ratio rose to 7.5 times for the 12 months ended June.

The stable outlook reflects Moody's belief that CLFX's debt protection measures will improve and become more supportive of the B1 rating over the next 12 to 18 months, the agency said.

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