Moody's lowers Gallery Media PDR to Ca

Moody's Investors Service said it downgraded the probability-of-default rating of Gallery Media Group Ltd. to Ca from Caa3. The corporate family rating of Gallery and the existing bond rating of Gallery Capital SA are unchanged at Caa3 and remain on review for downgrade.

The agency said the action was prompted by the expiry of the grace period that began on May 15, which was triggered by the company's failure to pay interest on the $175 million senior secured notes issued by Gallery Capital.

Moody's understands that the company is in negotiations with the creditors. It said the corporate family rating and the bond rating remain on review for downgrade given limited visibility on the probable outcome of the restructuring and the recoveries.

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