Moody's has downgraded its rating of Boardriders' $450 million senior secured term loan to a highly speculative level of B3. The loan will allow the parent company of Quiksilver to finance its acquisition of Billabong International and pay down debt. Moody's praised the terms of the deal but said it was a big risk for a company that just emerged from bankruptcy proceedings in 2016. Predicting gradual gains in profitability over the next 12-18 months, Moody's left the door open to improving its rating if Boardriders resumes sales growth, achieves expected synergies and generates positive cash flow.

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