Moody’s cuts Cimpress

Moody’s Investors Service said it downgraded all of Cimpress plc’s ratings, including the corporate family rating to B1 from Ba3 and the senior unsecured bond rating to B3 from B2.

Moody’s also downgraded all ratings at Cimpress subsidiary, Cimpress USA Inc., including the senior secured credit facility to Ba3 from Ba2.

“The rating actions reflect the impact of the coronavirus outbreak on Cimpress’ operating environment, the breadth and severity of the shock, and the broad deterioration in credit quality it has triggered. Moody’s rating actions consider a sharp reduction in Cimpress’ small and micro customers’ business activity across all markets as a result of pandemic, which will translate to a material decline in Cimpress’ earnings and liquidity as well as deterioration in credit metrics over the next 12-18 months,” the agency said.

The agency changed the outlooks for both companies to negative from stable.

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