Moody's lowers Heide

Moody's Investors Service said it downgraded Raffinerie Heide GmbH's corporate family rating to Caa1 from B3 and downgraded the company's probability of default rating to Caa1-PD from B3-PD.

At the same time, Moody's downgraded the instrument rating of the senior secured €250 million bond due 2022 to Caa1 from B3.

"Today's rating action reflects Heide's high Moody's adjusted leverage at 7.9x debt to EBITDA at the end of 2019, which is outside of our expectations for a B3 rating entering the downturn caused by Covid-19," said Janko Lukac, Moody's analyst for Heide, in a press release.

The outlook is negative. "The negative outlook reflects our expectations that Heide's earnings and cash flows may erode meaningfully over the next quarters and weaken its liquidity," added Lukac.

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