Moody’s cuts Weener

Moody’s Investors Service said it downgraded Weener Plastics Group BV’s €335 million backed senior secured term loan due 2025 and on the €75 million-equivalent multicurrency backed senior secured revolving credit facility due 2024 to B2 from B1.

The agency also lowered Weener Plastics Holding BV’s corporate family rating to B2 from B1 and its probability of default rating to B2-PD from B1-PD.

"The downgrade to B2 reflects the deteriorated operating environment in Russia, where the company generates approximately 18% of EBITDA, and the expectation that the increase in prices of raw materials, energy and logistics will negatively affect the company's performance over the next 12 to 18 months," said Donatella Maso, a Moody's vice president, senior analyst and lead analyst for Weener Plastics, in a press release.

"The company was already weakly positioned in the B1 rating category for some time, and the negative developments affecting its operations in Russia as well as the impact of inflation will prevent the improvement in the company's financial credit metrics to levels consistent with the previous B1 rating," added Maso.

The outlook for both companies is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.