Moody's trims O1 Properties

Moody's Investors Service said it downgraded O1 Properties Ltd.'s corporate family rating to Caa2 from B3 and probability of default rating to Caa3-PD from B3-PD. Concurrently, Moody's downgraded the senior unsecured ratings of instruments issued by O1 Properties Finance plc and O1 Properties Finance JSC, which are subsidiaries of O1, to Caa3 from Caa1. The outlook is negative.

The downgrade of O1's ratings reflects the increased refinancing risks related to substantial debt maturities in 2020-21, including the $350 million global note due in September 2021, and weak liquidity, with little prospect of improvement over the next two years. The rating action also factors in Moody's expectation O1's credit metrics will remain very weak in 2020-21 because of the unsustainable debt burden.

The syndicated credit facility for $148 million due on April 28, which has several still unresolved covenant breaches, represents a near-term liquidity risk. The company is in the process of refinancing this facility and expects to finalize it by April 28, the agency said.

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