Company: Wilton Products
Sponsor: GTCR Golder Rauner
Withdrawal: Moody’s confirmed the company’s B3 corporate family and probability of default ratings and withdrew its rating because it lacks adequate information to rate the company.
Highlights: The rating reflects “the risk inherent in the company’s highly leveraged capital structure which includes significant junior capital with limited rights ($195 million of mezzanine and $224 million of preferred equity).
Company: Panolam Industries
Sponsor: Genstar Capital LLC and Sterling Group
Withdrawal: Moody’s downgraded the company’s probability of default rating to “Ca/LD” from “Ca.”
Highlights: “The rating action reflects Panolam’s failure to make the interest payment on the 10 ¾% senior subordinated notes within the 30 day grace period following the April 1, 2009 interest payment date. “
Company: American Axle
Sponsor: Blackstone Group LP
Downgrade: Moody’s lowered the company’s probability of default rating to Caa3 from Caa1, and its Corporate Family Rating to Ca from Caa1.
Highlights: “The lowering of American Axle’s Probability of Default Rating to Caa3 considers the impact of the extended summer shutdowns announced by GM and Chrysler, which represented approximately 74% and 10% of total sales, respectively in 2008.”
Company: Evenflo
Sponsor: Weston Presidio
Downgrade: Moody’s downgraded the company’s corporate family rating to Caa1 from B3.
Highlights: “The downgrade reflects the company’s weak December 2008 quarter given the retail environment and our expectation that business conditions will remain challenging over the medium-term.”
Company: Oriental Trading Company
Sponsor: Carlyle Group
Withdrawal: S&P lowered the company’s corporate credit rating to ‘CCC’ from ‘CCC+’.
Highlights: The company obtained a waiver and an amendment to its credit facility but S&P believes that ongoing weak operating performance creates a narrow cushion and puts pressure on the company’s liquidity position.
Company: Arrowhead General Insurance Agency
Sponsor: Spectrum Equity Investors and JMI Equity
Action: S&P removed the company from “Creditwatch negative” following its filing of 2008 financial results and an amendment to its credit agreements. The company still has a negative outlook and ‘B-‘ counterparty credit rating.
Highlights: “We could revise the outlook to stable over the next 12 months if management were to be successful in performing in line with existing bank loan covenants, secure a new CFO, and provide evidence of more stable operating performance and improved liquidity.”
Previously:
Weekly Downgrade Report 12
Weekly Downgrade Report 11
Weekly Downgrade Report 10
Weekly Downgrade Report 9
Weekly Downgrade Report 8
Weekly Downgrade Report 7
Weekly Downgrade Report 6
Weekly Downgrade Report 5
Weekly Downgrade Report 4
Weekly Downgrade Report 3
Weekly Downgrade Report 2
Weekly Downgrade Report 1