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Moody’s cuts Global Eagle
Moody’s Investors Service said it downgraded the corporate family rating of Global Eagle Entertainment, Inc. to Caa2 from B3, the probability of default rating to Caa2-PD from B3-PD and the rating on the company’s senior secured bank credit facilities to B3 from B1. Moody’s also downgraded Global Eagle’s speculative grade liquidity rating to SGL-4 from SGL-2.
“The downgrade of Global Eagle’s CFR to Caa2 reflects Moody’s expectations that the company’s revenue and EBITDA will experience declines in the double-digit percentage range in 2020, leading to very high leverage (Moody’s adjusted debt to EBITDA) and weak liquidity. This revision in expected performance is due to Global Eagle’s heavy exposure to the airline and cruise ship industries, which are both facing unprecedented levels of reduced operations due to the coronavirus pandemic,” said Moody’s in a press release.
The outlook is negative.
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