Moody’s lowers Lecta, view to negative

Moody’s Investors Service said it downgraded Lecta SA’s corporate family rating to Caa3 from Caa1, the company’s probability of default rating to Ca-PD from Caa1-PD and the ratings of the €600 million senior secured bonds to Ca from Caa1.

“The rating action is driven by the proposed recapitalization which includes a debt-for-equity transaction representing a distressed exchange, which is deemed an event of default under our definitions,” said Dirk Steinicke, Moody’s lead analyst for the issuer.

The outlook has been changed to negative from stable.

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