Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers C > Headlines for Clara.net Holdings Ltd. > News item |
Fitch downgrades Clara.net
Fitch Ratings said it downgraded Clara.net Holdings Ltd.’s long-term issuer default rating to B from B+.
The outlook is stable.
Fitch also downgraded the group's secured loan facilities' rating to B+ from BB-.
The recovery rating remains at RR3.
“The downgrade reflects Clara.net's high leverage, negative Fitch-defined free cash flow and weak interest coverage metrics,” the agency said in a news release.
“We believe the capital structure is under pressure from debt-funded acquisitions that are yet to contribute significant EBITDA, slower-than-expected organic EBITDA growth and a high interest rate environment.
“We therefore view Clara.net's financial profile and credit metrics as being more consistent with a B rating, albeit with limited rating headroom.”
© 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.