Moody’s changes 4Finance view to negative

Moody’s Investors Service said it revised the outlooks for 4Finance Holding SA and 4Finance, SA to negative from under review. The agency also confirmed both companies’ B2 ratings.

The confirmation and outlook revision end the review started on July 3, after 4Finance Holding asked bondholders for a nine-month extension to the maturity of 4Finance, SA’s €150 million of senior unsecured bonds.

“Today’s rating action is driven by the announcement, on July 20, 2020, that the resolution to extend the maturity of the euro bonds by nine months to February 2022 was successfully passed. Over 1,000 investors, representing a participation of 68% of outstanding bonds, took part in the vote, while 95.4% by value voted in favor of the resolution, satisfying the 75% qualifying majority threshold,” Moody’s said in a press release.

Nevertheless, the agency is concerned that the need to seek an extension highlights the company’s weak liquidity and the limited options to access added sources of cash in the event of a shock, Moody’s said in explaining the negative outlooks.

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