Moody's downgrades Flamingo

Moody's Investors Service said it downgraded the ratings of Flamingo Group International Ltd., including its corporate family rating to Caa1 from B3; its probability of default rating to Caa1-PD from B3-PD, and its backed senior secured bank credit facility rating to Caa1 from B3. The facility includes a revolving credit facility and a term loan.

Concurrently, the agency also changed the company's outlook to negative from ratings under review.

The agency noted the downgrade and negative outlook reflect Flamingo’s nearing debt maturities, weakening operating performance and anemic liquidity.

“Moody's views the £24 million of cash at the end of March 2023 (pro forma for a €12 million repayment on the RCF) which comprises the company's total sources of liquidity as insufficient to meet the company's liquidity needs after Q1 2024, when the RCF matures and the semi-annual interest payment takes place,” the agency said.

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