Moody's lowers Labeyrie

Moody's Investors Service said it downgraded to B3 from B2 the ratings on the €455 million senior secured term loan B due July 2026 and the €65 million senior secured revolving credit facility also due in July 2026 both borrowed by Financiere Labeyrie Fine Foods SAS. The agency also lowered the company’s corporate family rating to B3 from B2 and the probability of default rating to B3-PD from B2-PD.

"The downgrade to B3 reflects weaker than expected operating performance and our expectations that deteriorating macroeconomic environment and weakening consumer sentiment will challenge a rapid recovery in profitability resulting in prolonged deterioration in credit metrics," said Valentino Balletta, a Moody's analyst and lead analyst for Labeyrie, in a press release.

"The downgrade also reflects our expectations of substantial negative free cash flow generation in FYE June 2023 that will result in additional debt and strain liquidity," Balletta added.

The outlook remains stable.

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