Moody's cuts Corus

Moody's Investors Service downgraded Corus Group plc's including cuttings Corus Finance plc's €400 million notes due 2006 and £200 million notes due 2008 to B3 from Ba2. The outlook is negative. The action concludes a review for downgrade begun on March 11. Moody's assigned a B1 senior implied and B3 issuer rating.

Moody's said the downgrade reflects Corus' challenging situation regarding the extension of its credit facilities in view of continued operating losses and further restructuring needs at its U.K. assets as well as the cancellation of the intended sale of the aluminum assets.

The notching of the bonds down from the senior implied rating reflects Corus's layered debt structure and Moody's expectation of security to be pledged to bank lenders going forward.

The negative outlook is in response to the operating challenges facing Corus and the short-term refinancing issues relating its core bank facility, a €1.4 billion syndicated loan maturing January 2004, Moody's added.

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