Moody's reviews Lecta

Moody's Investors Service said it placed on review for downgrade the Ba3 corporate family rating of Lecta SA, the Ba3 rating for the €598 million senior secured floating-rate notes due 2014 and the B1 rating for the €150 million senior unsecured floating-rate notes due 2014.

"The decision to place the Ba3 corporate family rating under review for possible downgrade was made on the back of a sustained weak price development for coated fine paper in Europe which has prevented Lecta to improve its financial profile," Martin Kohlhase, a Moody's assistant vice president, said in a written statement.

"Despite past and ongoing restructuring programs targeted to offset input cost pressure key credit metrics failed to improve in line with our expectations," Kohlhase said.

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