Moody’s cuts Frigoglass view to developing

Moody's Investors Service said it affirmed Frigoglass SAIC's B2 corporate family rating and B2-PD probability of default rating and changed the outlook to developing from stable following the announcement of the possible disposal of Frigoglass' glass business.

Concurrently, the agency affirmed the B2 senior unsecured rating assigned to Frigoglass Finance BV’s notes due 2018.

"Frigoglass's credit profile would improve if the company successfully executes its planned disposal of its glass division, as the sale would allow material deleveraging and improve group liquidity," Lorenzo Re, Moody's vice president, senior analyst and lead analyst for Frigoglass, said in a news release.

"However, we see increasing negative pressure on Frigoglass's rating on the back of a persisting weak operating performance, especially in its cooler business, and the group's deteriorating liquidity situation. Therefore, the failure to complete the planned disposal would result in strong negative pressure on the rating."

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