Moody's downgrades Korreden

Moody's Investors Service said it downgraded the corporate family rating to Ba3 from Ba2 of Korreden SA, the holding company for Akerys.

The agency also lowered to B1 from Ba3 the rating of the €300 million of senior floating-rate notes due 2014 issued by Akerys Holdings SA, a finance subsidiary of Korreden.

The company's probability-of-default rating is now Ba3.

Moody's said the action follows the sharp reduction in sales volumes Akerys has experienced as well as further pressure on its operating margins in the three quarters of fiscal 2007/2008.

Poor trading results have been accompanied by increasing levels of inventory and leverage, the agency said.

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