Moody's trims Flexitallic

Moody's Investors Service said it downgraded its ratings for FGI Acquisition Corp. (Flexitallic), including the company's corporate family rating Caa2 from B3 and probability of default rating to Caa3-PD from Caa1-PD, along with the ratings for its senior secured first-lien bank credit facilities to Caa2 from B3. The outlook is negative.

"The downgrades reflect our expectation of further earnings erosion over the course of 2020, compounding weaker than anticipated operating results in the second half of 2019 and a subsequently elevated financial risk profile," said Shirley Singh, Moody's lead analyst for Flexitallic, in a press release.

Flexitallic's exposure to the pressured oil & gas sector makes it susceptible to the drop in prices and broader economic slowdown, the agency said.

Moody's said it expects spending levels in the company's end-markets to contract, which will pressure the company's earnings and increase cash flow deficits in the year ahead.

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