Moody's cuts G Steel to Caa1

Moody's Investors Service said it downgraded to Caa1 from B3 the corporate family rating and senior unsecured ratings of G Steel plc.

The outlook remains negative.

The downgrade reflects near-term liquidity risk stemming from dramatic deterioration in G Steel's operating environment and the adverse impact on its sales and earnings, Moody's said.

This is likely to constrain the company's ability to repay upcoming semi-annual loan installment of $15 million in April 2009, the agency said.

The downgrade also reflects concerns about G Steel's inability to meet its financial covenants as a result of its weak operating results, 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.