Moody’s changes Icahn view

Moody's Investors Service said it affirmed Icahn Enterprises LP's Ba3 corporate family rating, Ba3-PD probability of default rating and Ba3 guaranteed senior unsecured debt ratings.

The outlook on the ratings was changed to negative from stable.

“Today's rating action reflects the impact the declines in the market value of IEP's energy, automotive and investment segments will have on IEP's market value based leverage (MVL) and cash flow,” the agency said in a news release.

“IEP's MVL ended 2019 with just under 30% but we now expect it will remain well above 30% for the remainder of 2020 as the consumer demand toll of the coronavirus is reflected in the valuations of subsidiaries and the mark-to-market based declines of its investment segment.”

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