Maytag rating cut

Maytag rating cut
 
Date December 08, 2005
Section(s) Business
Brief  
 
Fitch Ratings on Wednesday cut Maytag Corporation’s senior unsecured debt rating, citing the company’s deteriorating performance and lower prospects that noteholders will recover their money in a distressed situation, Reuters reported.

Fitch cut Maytag‘s rating by two notches to “B-plus” from BB. This brings its rating four steps below investment grade.

Last month, Maytag entered into a new $600 million, five-year, senior secured revolving credit agreement, replacing its existing $300 million line of credit. Under the agreement, Maytag has the ability to increase the credit line by $150 million to $750 million.

Maytag said the money would be used to meet its debt obligations, operate and restructure its business.

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