Moody's may cut Esselte

Moody's Investors Service said it placed the debt ratings of Esselte Group Holdings AB on review for possible downgrade following the company's release of weak operating results for its fiscal second quarter ended July.

Moody's placed on review Esselte's B1 senior implied rating, B3 rated €150 million senior notes due 2011 and Caa1 senior unsecured issuer rating.

In particular, Moody's said the company has been negatively impacted by pricing pressures from its key retailers in the United States and from private label competition in Europe.

Further, Moody's said it believes that Esselte's compliance with covenants under its credit facilities could become constrained during this period.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.