Moody's downgrades Flint

Moody's Investors Service said it downgraded ColourOz MidCo's (Flint) corporate family rating to Ca from Caa3 following the company's announcement March 20 that it agreed with a group of lenders to restructure its debt. Concurrently, Moody's downgraded to Ca from Caa2 the senior secured first-lien term loans B and C and senior secured first-lien revolving credit facility, issued by Colouroz Investment 1 GMBH and the senior secured first-lien term loan B issued by FDS Holdings BV. Moody’s affirmed the senior secured second-lien term loans at C.

In the same action, the agency appended a limited default (/LD) designation to Flint’s probability of default rating changing it to Ca-PD/LD from Ca-PD, because the company did not repay its revolving credit facility upon maturity on March 21.

“The downgrade of Flint's long-term corporate family rating (CFR) to Ca from Caa3 reflects Moody's assumption of a high likelihood of completion of a debt restructuring in the short-term and the expectation that creditors will incur losses through the transaction. Moody's will likely remove the /LD designation upon completion of the company's debt restructuring. The limited default designation reflects the fact that the non-repayment of the revolving credit facility at maturity constitutes a default under Moody's definition,” the agency said in a press release.

The outlook on Flint, Colouroz and FDS remains stable.

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