Moody's Lowers American Railcar's Junk Ratings
NEW YORK (AP) ¿ Moody's Investors Service on Monday lowered American Railcar Industries Inc.'s corporate family rating and its probability of default ratings.
The ratings agency downgraded the St. Charles, Mo.-based company's corporate family rating to "Caa1" from "B2" and its default rating from to "B3" from "B2". It also rated the company's $275 million senior unsecured notes to "Caa1" from "B3." All of the ratings are non-investment grade, or "junk."
Moody's assigned the company a negative outlook.
The ratings agency said it believes the company's prospects for defaulting are low in the near term, but absent a recovery in market conditions, and as American Railcar's notes mature, the probability for default is likely to increase.The corporate family rating reflects Moody's assessment that in the event of a default recovery, the company will be substantially restricted by weak prospects of its railcar manufacturing, which are likely to exist over the next 12 to 18 months. "The negative ratings outlook reflects concerns that a prolonged period of weakness in the rail car sector will likely result in a period of dramatically weaker revenues and operating losses," said Moody's.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV