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Dayco Products, LLC -- Moody's downgrades Dayco's CFR to B3, outlook is stable

Moody's Investors Service ("Moody's") downgraded Dayco Products, LLC's ("Dayco") Corporate Family Rating (CFR) to B3 from B2, its Probability of Default Rating (PDR) to B3-PD from B2-PD and the senior secured term loan rating to B3 from B2. The downgrade reflects Moody's expectations that the pressures in the aftermarket from select retailers along with a potential softer automotive and industrial OE environment will continue to keep Dayco's debt-to-EBITDA leverage elevated in the 6.0x range and will result in weak free cash flow in the next 12 to 18 months.