Moody’s might drop Gloria Foods

Moody's Investors Service said it placed Gloria Foods Jorb SA's Baa3 issuer rating on review for downgrade.

The review was triggered by Gloria Foods' weak liquidity position and the company's tight approach to short-term debt management, with cash on hand covering only 27% of the next 12-month maturities as of Dec. 31, 2015.

Moody’s said the company’s liquidity position is weak for its Baa3 rating and has deteriorated over the last few years mainly as a consequence of negative free cash flow generation and of an increase in absolute debt levels. Gloria Foods’ cash position declined to $28 million in December 2015 from $73 million in December 2013.

At the same time, total adjusted debt climbed to $510 million from $400 million over the same period. About 20% of Gloria's total debt is coming due in the next 12 months, as of Dec. 31, 2015, and additional debt maturities amount to a bit above $70 million each year until at least 2019.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.