Moody’s downgrades Lion/Gem to Caa2

Moody's Investors Service said it downgraded Lion/Gem Luxembourg 3 Sarl's (Young) corporate family rating to Caa2 from Caa1 and probability of default rating to Caa2-PD from Caa1-PD.

The outlook was changed to negative from stable.

Moody’s said the action reflects its view that rising input costs and fierce competition will pressure Lion/Gem’s profitability over the next 12 to 18 months. This in addition to the company's already weak credit metrics result in a capital structure that the agency sees as unsustainable.

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