Moody's downgrades Doncasters

Moody's Investors Service said it downgraded the corporate family rating of Doncasters Group Ltd. to Caa1 from B3 and the probability of default rating to Caa1-PD from B3-PD.

The agency also said it downgraded the senior secured ratings assigned to the first- and second-lien facilities of Doncasters Finance US LLC to Caa1 from B3 and to Caa3 from Caa2, respectively.

The outlook remains negative.

The decision to downgrade the ratings was triggered by the decline in EBITDA of continuing operations seen during the first half of 2018 and continuing negative free cash flow generation, Moody's said.

While Doncasters made good progress on its strategy to focus on its core competencies and to dispose non-core activities, the contribution of the core activities was not strong enough to prevent an increase in leverage, the agency said.

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