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.