Moody's lowers Grupo Antolin view to negative

Moody's Investors Service said it changed the outlook on the ratings of Grupo Antolin-Irausa, SA to negative from stable.

Moody's also said it affirmed Grupo Antolin's corporate family rating of Ba3, probability of default rating of Ba3-PD and the Ba3 ratings on the senior secured notes issued by Grupo Antolin.

The outlook revision reflects the ongoing pressure on Grupo Antolin's operating margins and recently increased financial leverage, the agency said.

Moody's said it might be challenging for Grupo Antolin to reduce its financial leverage to less than 4x, which is believed to be an appropriate level for its Ba3 rating.

The negative outlook reflects an expectation that Grupo Antolin's financial leverage will be in a range of 4 to 4.5x at the end of 2018, the agency said.

In 2019, it could also be challenging to de-lever into the range of 3.5 to 4x required for the Ba3, given the highly competitive industry environment and despite expected earnings improvements due to the launch of new model series, Moody's added.

© 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.