Moody's trims Cooperativa Muratori e Cementisti

Moody's Investors Service said it downgraded the corporate family rating of Cooperativa Muratori e Cementisti CMC to Caa2 from B3 and probability of default rating to Caa3-PD from B3-PD.

Moody's also said it downgraded to Caa2 from B3 the ratings on the group's €250 million and €325 million senior unsecured notes due 2022 and 2023.

The ratings are under review for further downgrade, the agency said.

The downgrades reflect news that Cooperativa Muratori due to structurally adverse market conditions, which have led to a further unexpected constraint in its liquidity, Moody's said.

The group will not pay the interest on its €325 million senior unsecured notes on time, the agency explained.

Although the documentation for the notes allows a 30-day grace period on interest payments before there is an event of default, Moody's said it considers the probability of a payment default in the coming weeks as very high.

This is because of the highly uncertain ability of the group to sufficiently improve its cash flow generation and thereby strengthen its stretched liquidity, the agency said.

Moody's said it believes the company will seek to restructure its debt.

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