Moody's downgrades Castellum

Moody's Investors Service said it downgraded Castellum AB's long-term ratings to Baa3 from Baa2, all backed senior unsecured medium-term note ratings to Baa3 from Baa2, and its subordinate debt rating to Ba2 from Ba1.

“The rating downgrade to Baa3 reflects Castellum's significant exposure to more challenging capital market conditions with increasing interest rates and widening credit spreads, which will materially increase funding costs for Castellum. About half of the company's interest rate is either maturing in the coming 12 months or based on floating rates and we expect materially higher interest costs to drive a weakening of the group's fixed-charge coverage ratio over the next 12-18 months to below 3.5x,” Moody’s said in a press release.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.