Moody's cuts Grupo Papelero

Moody's Investors Service said it downgraded Grupo Papelero Scribe, SA de CV's corporate family rating to B1 from Ba3.

At the same time, Moody's downgraded the rating of the $300 million senior unsecured notes due 2020 to B1 from Ba3.

The outlook is stable.

"The downgrade reflects the company's weakened credit profile over the last nine months driven by higher debt incurred to finance the acquisition of the Colombian notebook business from Kimberly Colpapel, S.A. combined with weak EBITDA generation resulting in high leverage and low interest coverage," Moody's assistant vice president Alonso Sanchez Rosario said in a news release.

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