Moody’s Downgrades Western Digital Debt

Moody’s Investors Service downgraded Western Digital Corp.’s $59 million in long-term debt as a result of the company’s financial problems. The credit rating service downgraded the firm’s convertible subordinated debentures from B2 to Caa.

The action follows Western Digital’s announcement Friday that it lost $98.5 million in the second quarter ended Dec. 29 and it was renegotiating agreements with lenders on $160 million in debt. The company makes disk drives and semiconductors.

Standard & Poor’s, another investment rating service, previously put Western Digital’s long-term debt on its credit watch list for possible downgrade. Robert Blair, spokesman for the company, said the downgrade by Moody’s was expected.