Moody's drops Global Automotive Logistics

Moody's Investors Service said it downgraded all the ratings of Global Automotive Logistics SAS (GAL) and its financial subsidiary GAL Finance SA prompted by further weakness in the operating profile of the company, expected lower profitability for full years 2005 and 2006 and the recent decline in Renault's car volumes.

The outlook remains negative.

Moody's noted GAL's operating performance continue to be challenged in the third quarter due to weakness in Renault's market share across Western Europe markets and in France overall.

Affected ratings include the corporate family rating is downgraded to B1 from Ba3, €72.5 million senior secured term loan due 2008 downgraded to B1 from Ba3, €50 million senior secured revolving facility due 2007 downgraded to B1 from Ba3 and €100 million senior unsecured notes due 2009 downgraded to B3 from B2.

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