Moody’s lowers Emerald X

Moody’s Investors Service said it downgraded Emerald X, Inc. corporate family rating to B2 from B1 and its probability of default rating to B3-PD from B2-PD as a result of anticipated financial performance deterioration related to coronavirus outbreak.

Moody’s also downgraded ratings on the company’s $150 million revolving credit facility and a $530.9 million term loan B to B2 from B1. The speculative grade liquidity rating has been revised to SGL-3 from SGL-2, reflecting adequate liquidity. Emerald’s ratings have been placed under review for further downgrade.

“The ratings downgrade and placement under review reflects Moody’s expectation for meaningful deterioration in Emerald’s financial performance, at a minimum, through June 2020, due to event cancellations and postponements stemming from coronavirus containment measures,” Moody’s said in a press release.

“We anticipate additional near-term pressure on Emerald’s liquidity as it awaits the receipt of event-cancellation insurance proceeds while managing uncertainty and the evolving impacts of the coronavirus outbreak on its events business,” the agency said.

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