Moody's ups Xerium to SGL-3

Moody's Investors Service said it revised Xerium Technologies, Inc.'s outlook to positive from negative, upgraded its speculative grade liquidity rating to SGL-3 from SGL-4 and its probability-of-default rating to Caa1 from Caa2.

The agency affirmed the Caa1 corporate family rating and the senior secured term loan and revolving credit facility at Caa1 (LGD3, 46%).

The actions reflect the company's recent amendment to its credit agreement on May 30, the completion of its goodwill impairment test and the recent filing of its delinquent financial statements, according to the agency. The company is expected to have adequate liquidity over the next 12 months and comply with its financial covenants.

Moody's said it affirmed the Caa1 corporate family rating, despite improved short-term liquidity, because the company's operating performance may remain weak.

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