Moody's moves SJM outlook to negative

Moody's Investors Service said it revised the outlooks to negative from under review for SJM Holdings Ltd. and its subsidiary Champion Path Holdings Ltd. Moody’s also confirmed SJM’s Ba3 corporate family rating and the B1 rating on the backed senior unsecured bonds issued by Champion guaranteed by SJM.

These actions conclude the review for downgrade started on Oct. 25, the agency said.

"The confirmation of the ratings reflects the completed refinancing of SJM's loan facilities, which now provide the company with adequate liquidity for at least the next 12 months," said Sean Hwang, a Moody's assistant vice president and analyst, in a press release.

"That said, the negative outlook reflects the high uncertainty surrounding the pace and extent of SJM's earnings recovery, and our view that SJM's financial leverage will likely remain very high over the next 12-18 months," Hwang added.

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