Moody's could cut Refresco

Moody's Investors Service said it placed the B2 corporate family rating and the B2-PD probability of default rating of Refresco Group BV under review for downgrade following the company's recent announcement of its intention to merge with Gerber Emig Group Ltd., subject to regulatory approval.

Concurrently, the agency also placed the B2 rating of Refresco's €660 million of senior secured notes due 2018 under review for downgrade.

The transaction, which was approved by the shareholders of both Refresco and Gerber Emig, is anticipated to be funded though the use of Refresco's super-senior revolving credit facility and cash from both companies.

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