Moody's downgrades Global Automotive Logistics

Moody's Investors Service said it downgraded Global Automotive Logistics SAS' corporate family rating to Ca from Caa1, €60 million senior secured term loan due 2008 and €40 million senior secured revolving facility due 2008 to Caa3 from Caa1 and €100 million senior unsecured notes due 2009 to C from Caa3.

The outlook is stable.

The downgrade reflects the agency's revised assessment of potential recovery values for all creditors post default in light of continuing pressure on Renault's volumes, which is a key driver in the value of the underlying logistics contract, the fact that the expiry of the contract with Renault is now within a one year timeframe with a court resolution yet to be forthcoming and the overall concerns that uncertainty regarding potential outcomes from the safeguard procedure remains high.

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