Moody's cuts Lecta view to negative

Moody's Investors Service said it changed the outlook on all ratings of Lecta SA to negative from stable.

The B1 corporate family rating, B1 probability of default rating, B1 rating for the €598 million senior secured floating-rate notes due 2014 and B3 rating for the €150 million senior unsecured floating-rate notes due 2014 are affirmed.

The change in the outlook was driven by a continued contraction in Lecta's operating performance and declining operating cash flow generation in the first nine months of 2008 despite rising paper deliveries, Moody's said.

While it is likely that credit metrics could be restored over the next quarters supported by lower input costs and the realization of price increases, the negative outlook considers the weakening demand levels in Lecta's main market, the agency said.

© 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.