WESTPORT, CT (BRAIN)—Compass Diversified Holdings pulled money out of its revolving credit facility to pay $257.5 million for Camelbak in August. Since Compass has yet to secure a long-term loan for that acquisition, Moody’s downgraded its credit rating from SGL-2 to SGL-3. Compass is also the parent company of Fox Racing Shox.
Speculative-grade liquidity ratings (SGLs) are Moody’s opinion about Compass’ abilities to generate cash from internal resources and the availability of external sources of committed financing available to the company. The rating looks forward to the company’s cash obligations over the coming 12 months. Moody’s noted that if Compass refinances its debt with a long-term loan, its rating would revert back to the higher rating.
—Matt Wiebe
mwiebe@bicycleretailer.com
