Moody's Investors Service raised its ratings on the outstanding debt of Dynamic Details, Inc., an electronic design and development services company. The rating agency raised the rating from B1 to Ba3 on the company's $223.7 million senior secured credit facilities comprising a $59.6 million tranche "A," an $89.1 million tranche "B," and a $75 million revolving credit facility. Moody's cites the company's low debt to cash flow leverage of 2.5 times for 2000 and the company's increased scale of operations to nearly $498 million in revenues in 2000 as conditions affecting the agency's upgrade. The company's credit facility was amended in October 2000 to provide for $30 million of uncommitted borrowing lines. Dynamic's fixed charges coverage and leverage covenants have been made more restrictive. The company is currently in the process of arranging for another $50 million in uncommitted borrowing lines.
*Tenneco Automotive, Inc.'s $1.55 billion of senior secured bank facilities were downgraded from Ba3 to B2 by Moody's Investors Service reflecting the agency's growing concerns regarding the company's strained interest coverage, high leverage, and disappointing operating performance. In addition, Moody's has continued questions regarding Tenneco's near-term liquidity protection as there are indications that the company is in danger of violating the October 2000 amendment of its bank financial covenant requirements during either the first or second quarter of 2001. Tenneco's credit facilities comprise a $500 million revolving credit, a $450 million term loan "A", a $300 million term loan "B", and a $300 million term loan "C."
* Moody's Investors Service upgraded American Skiing Company Inc.'s $100 million revolving credit facility and $65 million term loan "B" in anticipation of the company's merger with MeriStar Hotels & Resorts, Inc. Moody's would likely put the company under review for a downgrade if for some reason the transaction is not finalized. American Ski Company's revolving credit facilities have been upgraded to B1 from B2 with a stable outlook. Moody's expects the merger with MeriStar --which will result in a newly named entity called Doral International--to materialize into an entity with a more diversified and less seasonal business mix than its predecessor. In addition, Moody's thinks the Doral brand name recognition will also benefit the new organization. The ratings agency does point out that stability will depend on the success of the operational integration of the two firms.