PE Debt Watch (Upgrades & Downgrades)

As usual, we have a week’s worth of ratings actions on the debt of LBO-backed companies from ratings agencies Moody’s Investors Service. This week three companies were a mix: one bankruptcy, one downgrade, and one outlook imrovement.

Company: Electrical Components International
Sponsor: Francisco Partners
Action: Moody’s lowered the company’s probability of default rating and the corporate family rating to Ca from Caa3 following its filing for protection under Chapter 11 of the US Bankruptcy Code on March 30, 2010.
Highlight: The last rating action was on January 6, 2009 at which time Moody’s downgraded ECI’s corporate family rating to Caa3 from Caa2.

Company: Allis-Chalmers Energy
Sponsor: Lime Rock Partners
Action: S&P revised its outlook on oilfield services provider Allis-Chalmers Energy Inc. to stable from negative and affirmed the ‘B-‘ corporate credit rating.
Highlight: “The change in outlook is due to our expectations that conditions in the oilfield services sector have improved, albeit tenuous, and that Allis-Chalmers’ financial performance will likely strengthen over the course of 2010,” said Standard & Poor’s credit analyst Patrick Lee.

Company: Ceridian Corp.
Sponsor: THL Partners
Action: S&P lowered its corporate credit rating on Minneapolis-based information services provider Ceridian Corp. to ‘B-‘ from ‘B’.
Highlight: “The downgrade reflects lower revenue and EBITDA levels in fiscal 2009 and weaker debt protection metrics,” said Standard & Poor’s credit analyst Martha Toll-Reed.

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View Past Downgrade and Upgrade Lists Here