Moody's lowers Renova

Moody's Investors Service said it downgraded the corporate family rating of Renova Holding Ltd. to Ba3 from Ba2 and maintained ratings under review for downgrade.

The action follows the increase during 2008 in the investment company's leverage as a result of new debt incurred to finance several acquisitions giving rise to sizable debt service obligations during this fiscal year at a time when the projected cash flow generation of the holding is likely to be reduced by lower dividend flows resulting in the group becoming possibly more reliant upon the timely execution of divestitures to meet those obligations, according to the agency.

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