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Yet Again, Guitar Center, Owner of AVDG, Sees Moody’s Downgrade Its Credit Rating

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Guitar Center store in Florida

Moody’s on GC: ‘Outlook Remains Negative’

This week, Moody’s Ratings, part of Moody’s Investors Services, announced that it was cutting Guitar Center’s credit rating to Caa3, down from Caa2. Guitar Center came on Strata-gee’s radar screen back in 2017 when it acquired AudioVisual Design Group (AVDG), a multi-regional integration group that to me seemed an odd fit with the mission of a struggling mass market musical instrument dealer. In 2020, Guitar Center filed for bankruptcy but has since exited on court approval of a new operating plan.

See more on the struggles of Guitar Center causing this downgrade

[Read more…] about Yet Again, Guitar Center, Owner of AVDG, Sees Moody’s Downgrade Its Credit Rating

Once Again Moody’s Downgrades the Credit of AVDG Parent Guitar Center

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Photo of Guitar Center store in Manhattan. Guitar Center owns AVDG
Guitar Center in Manhattan

Moody’s Investors Service (Moody’s) announced recently that it has once again downgraded the overall credit rating of Guitar Center Inc. – the owner of custom integrator Audio Visual Design Group (AVDG). The agency has dropped its creditworthiness from B2 to B3. Not only that, Moody’s notes that it has additionally downgraded the company’s rating on a specific item – its senior secured note – to Caa1 from B3. The outlook for the near term is said to be “stable.”

This is yet a new chapter in a long-troubled private equity-owned company swimming in debt and trying to grow itself out of trouble.

See more on Moody’s analysis of Guitar Center/AVDG…

[Read more…] about Once Again Moody’s Downgrades the Credit of AVDG Parent Guitar Center

Moody’s Raises Snap One’s Credit Rating in Wake of Its Successful IPO

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Moody's Investor

Moody’s Investors Service, one of the top global credit and bond rating agencies, announced last week that it has raised the credit rating on Wirepath LLC (dba Snap One) based on its successful completion of an initial public offering of shares of the company’s stock. This is good news for Snap One and potential investors.

Learn more about the new Snap One credit rating by Moody’s

[Read more…] about Moody’s Raises Snap One’s Credit Rating in Wake of Its Successful IPO

Is Sound United Sound? Top Credit Rating Agency Says It’s ‘Speculative’

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Sound United logo

Moody’s Investors Service, one of the top credit rating agencies in the world, said this month that DEI Sales, Inc., dba Sound United, has been assigned a credit rating of B2 and a probability of default rating of B2-PD. In addition to this, they are assigning another B2 rating to Sound United’s proposed $380 million senior secured first lien term loan due in 2028. The forward looking “outlook” for Sound United and this rating is “stable.”

What does a B2 rating of Sound United mean?

[Read more…] about Is Sound United Sound? Top Credit Rating Agency Says It’s ‘Speculative’

Is Gibson Brands Headed for a Default?

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Moody’s Hits Gibson Brands with Another Credit Downgrade

Logo for Gibson BrandsMoody’s Investors Service, one of the largest credit rating services in the world, has downgraded the credit rating for Gibson Brands, the Nashville-based parent of Gibson Guitar, Onkyo, Teac, KRK, Philips, Stanton and more. Moody’s has set their rating on Gibson Brands debt to Caa3, down one step from Caa2.

The move caused Wall Street investment analyst The Street to raise the specter of the possibility of Gibson Brands defaulting on their debt.

See why Moody’s says the Gibson Brands situation is unsustainable… [Read more…] about Is Gibson Brands Headed for a Default?

Is Sony Junk? Not Anymore, Says Moody’s

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Moody's InvestorMoody’s Japan announced this week that it has raised its rating on Sony’s credit to Baa3, one step up from “junk.” This is the first time that Sony’s credit has been determined to be “investment grade” in years and reflects the company’s improved financial performance.

But Moody’s had even more good news for Sony. Read on… [Read more…] about Is Sony Junk? Not Anymore, Says Moody’s

Toshiba Credit Rating Cut to ‘Junk’ Status by Moody’s

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Toshiba signLast week, Moody’s Investors Service announced that it was cutting Toshiba Corp.’s long-term senior bond rating to Ba2, or “junk” status. Considering recent reports from Toshiba, a major industry player that is stumbling in the wake of a scandalous accounting misstep reported earlier this year, the move from the rating service makes sense. But the headline about a brand that was once one of the most admired companies in Japan, and a worldwide industrial and electronics powerhouse for many years, is stunning nonetheless.

There is even more from Moody’s, who changed other ratings as well… [Read more…] about Toshiba Credit Rating Cut to ‘Junk’ Status by Moody’s

Economy Falling into Recession, Moody’s Cuts Japan’s Credit Rating

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Moody's InvestorSaying that there is “rising uncertainty” with regards to the country’s debt situation, Moody’s has cut Japan’s credit rating. Yet another indicator of fundamental problems in one of the world’s most powerful economies, Japan’s problems go well beyond its dramatically changing TECH industry.

See more on this surprising downgrade and what it means… [Read more…] about Economy Falling into Recession, Moody’s Cuts Japan’s Credit Rating

It’s Official, Moody’s Says Sony is ‘Junk’

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Sony logo on screen at CES press presentationIn a move that has been highly anticipated or, depending on your point of view, highly dreaded,  Moody’s Investors Service cut its credit rating on Sony Corp. by one notch, dropping it below investment grade – taking it to “junk” status, in industry parlance. The downgrade was made on Monday and it is significant in that it symbolizes the continuing struggles of the company as it to tries to improve its fortunes – so far with mixed results.

See more on this huge announcement sure to be the bane of Sony management… [Read more…] about It’s Official, Moody’s Says Sony is ‘Junk’

Moody’s Cuts Sony’s Credit Rating Again; Now Just One Notch Above ‘Junk’

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Photo of Sony's make.believe logo
PHOTO: Reuters/Yuriko Nakao

The investment community remains unconvinced that new Sony Corp. CEO Kaz Harai is making meaningful headway in turning around the financial performance at the struggling tech manufacturer. And now Reuters is reporting out of Tokyo that credit rating agency Moody’s Investor Services has piled on with another downgrade of the company’s credit, placing it perilously close to “junk” status.

Why did Moody’s downgrade Sony again just one month after a previous downgrade? [Read more…] about Moody’s Cuts Sony’s Credit Rating Again; Now Just One Notch Above ‘Junk’