Moody's drops Primus

Moody's Investors Service said it downgraded Primus Telecommunications Group, Inc.'s probability of default rating to Ca from Caa3, its corporate family rating to C from Ca, and also downgraded the company's speculative-grade liquidity rating to SGL-4 (poor) from SGL-3 (adequate).

The rating actions anticipate that Primus will not be able to repay or refinance the approximate $23 million of long-term debt the company has coming due from June through October of 2009, the agency said.

Given the current background of significant capital market dislocation, the company's very poor liquidity and uncertain future prospects, and with a series of distressed debt exchanges already having been implemented that have not, in retrospect, materially contributed to a comprehensive stabilization of the company's finances, the potential of additional distressed debt exchange activity is significantly discounted, Moody's added.

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