Moody’s lowers NexTag

Moody’s Investors Service said it downgraded NexTag Inc.’s probability of default rating to Ca-PD/LD from Caa2-PD, corporate family rating to Ca from Caa2 and the rating for its first-lien senior secured credit facilities to Ca from Caa2.

The downgrades include the rating on its $25 million first-lien senior secured revolver due 2016 to Ca (LGD 3, 48%) from Caa2 (LGD 3, 47%) and $68 million first-lien senior secured term loan due 2016 to Ca (LGD 3, 48%) from Caa2 (LGD 3, 47%).

The outlook is stable.

The downgrades reflect the company’s recent debt-for-equity exchange of the majority of the $68 million first-lien term loan and $25 million revolving credit facility, Moody’s said.

Moody’s said it views this transaction as a distressed exchange.

The LD indicator signifies that the distressed exchange qualifies as a limited default, the agency said.

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