Moody’s downgrades Adler Pelzer

Moody’s Investors Service said it downgraded the corporate family rating and senior secured instrument ratings of Adler Pelzer Holding GmbH to B3 from B2. Concurrently, Moody’s downgraded the probability of default rating to B3-PD from B2-PD. The outlook on the ratings changed to negative from ratings under review.

This rating action finishes the review for downgrade process started on March 26, the agency said.

“The rating downgrade is driven by our expectation that Adler Pelzer’s profitability and financial leverage will suffer materially from the global coronavirus outbreak and no longer be commensurate with a B2,” said Matthias Heck, a Moody’s vice president, senior credit officer and lead analyst for Adler Pelzer, in a press release.

“The negative outlook reflects the ongoing challenging sector environment in the automotive industry, which could make it difficult for the group to properly invest into the business to restore profitability while maintaining sufficient liquidity,” added Heck.

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