Moody’s lowers Garfunkelux

Moody's Ratings said it downgraded Garfunkelux Holdco 2 SA's corporate family rating to B3 from B2 and Garfunkelux Holdco 3 SA's senior secured debt ratings to B3 from B2.

Moody's also placed the ratings on review for further downgrade.

The agency said the actions reflect a view of the challenges to Garfunkelux's creditworthiness in light of the concentration of Garfunkelux's debt maturities in 2025.

These will likely be refinanced at far higher interest rates than the current levels it pays, particularly on its secured bonds, which will pressure its interest coverage and inhibit the company's efforts to restore profitability after several loss-making periods, Moody’s said.

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