Moody's downgrades C&S

Moody's Investors Service said it downgraded C&S Group Enterprises LLC's corporate family rating to Ba3 from Ba2 and its probability of default rating to Ba3-PD from Ba2-PD. Moody's also downgraded the company's senior secured notes rating to B1 from Ba3. The outlook is stable. This concludes the ratings review which was initiated on Dec. 11.

“Although the loss of Ahold revenue will be in increments through 2024, it will ultimately lower EBITDA significantly", said Mickey Chadha, a Moody's vice president, in a press release. “If the loss of revenue and EBITDA is not offset by proportionate cost cuts or increased revenue and if the company does not reduce debt its leverage will remain elevated,” Chadha further stated.

In December, the company was notified by one of its largest customers, Koninklijke Ahold NV, that Ahold will not be renewing its contract. Instead, Ahold intends to assume the procurement role in connection with its plans to transform its supply chain and distribution network operations.

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