Moody’s cuts Faerch Plast loans

Moody's Investors Service said it downgraded to B3 from B2 the €576 million equivalent upsized term loans and €65 million revolving credit facility borrowed at Faerch Plast Bidco ApS.

The agency affirmed the B3 corporate family rating and B3-PD probability of default rating of parent Faerch Plast Midco ApS.

The outlook remains stable.

Moody’s said the downgrade of the instrument ratings is primarily driven by the company's decision to refinance the €100 million second-lien facility with additional £145 million of first-lien term loan B.

As a result, the now larger first-lien term loans no longer benefit from the subordinated debt cushion that the second-lien provided and, accordingly, the instrument ratings are aligned with the corporate family rating, the agency said.

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