Moody's: Kloeckner bonds Caa1

Moody's Investors Service said it assigned a definitive Caa1 rating to Kloeckner Pentaplast's recent bond issuance.

Moody's said the assigned Caa1 rating of the senior secured notes is two notches below the group's B2 corporate family rating, reflecting the sizable portion of priority debt ranking ahead of the notes.

While the notes benefit from the same collateral package as the group's senior secured bank debt, in a default scenario noteholders will benefit from any proceeds on a subordinated basis only and payments in respect of the guarantees supporting the notes are applied first to the senior secured revolving credit facility and senior secured term loan B and only thereafter to the notes, the agency said.

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