Moody’s drops Avanti, bonds to Ca

Moody's Investors Service said it downgraded Avanti Communications Group plc’s corporate family rating and senior secured bond ratings to Ca from Caa1 and its probability of default rating to Ca-PD from B3-PD.

The outlook is negative.

"The ratings downgrade reflects Avanti's significantly deteriorated liquidity and reduced EBITDA which result in a lower enterprise valuation. As a result, the risk of default over the next 6-12 months is very high and the Ca rating is consistent with a recovery in the 35%-65% range at default," Alejandro Nuñez, Moody's vice president, senior analyst and lead analyst for Avanti, said in a news release.

The action principally reflects the company's deteriorating liquidity resulting from lower than anticipated cash earnings and a higher than expected working capital outflow over the past two quarters, the agency added.

© 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.