Moody’s downgrades Edilians

Moody’s Investors Service said it downgraded LSF10 Edilians Investments Sarl’s corporate family rating and probability of default rating to B2 and B2-PD from B1 and B1-PD, respectively.

Concurrently Moody’s downgraded the ratings on its €500 million senior secured first-lien term loan B2 and its €90 million senior secured first-lien revolving credit facility to B2 from B1. The rating on the €100 million senior secured second-lien term loan B was also downgraded to Caa1 from B3.

"The downgrade of Edilians’ ratings reflects the deterioration in the operating environment for European building materials producers. Accordingly, we expect that Edilians’ leverage, which was already high for its former B1 rating will not gradually decline over the next 12 to 18 months but rather increase with an uncertain pace of recovery in 2021, " said Ana Luz Silva, a Moody’s assistant vice president-analyst and lead analyst for Edilians, in a press release.

Moody’s changed the outlook to negative from stable. “The negative outlook reflects Moody’s view that the market environment will remain challenging amid uncertainty around how long economic activity will remain disrupted and the market backdrop afterwards,” the agency said.

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