M/A-Com Inc’s weak returns even before restructuring charges have persuaded Moody’s Investors Service Inc to lower the rating on the former Microwave Associates’ $65m of 9.25% convertible subordinated debentures due 2006 to B-3 from B-2. The cut is based on continued flat to declining revenues and narrow profits for the near term, difficulties associated with expanding the commercial businesses to offset further declines in the military sector, deteriorated debt protection measurements and capital constraints to fund future growth, Moody’s added.
