Moody’s trims Libbey

Moody’s Investors Service said it downgraded the corporate family rating and probability of default rating of Libbey Glass Inc. to B3 from B2 and to B3-PD from B2-PD, respectively.

Moody’s also cut the rating on the company’s $440 million principal first-lien term loan due 2021 one notch to B3 from B2.

The agency downgraded the Libbey’s speculative grade liquidity rating to SGL-3 from SGL-2.

“The downgrade reflects continued weakness in Libbey’s credit metrics and deterioration in the EBITDA margin as a result of industry headwinds from glassware overcapacity and soft market conditions in the company’s EMEA and Latin America regions. We also expect the additional interest cost necessary to refinance the upcoming 2021 debt maturities will sustain weak free cash flow generation and limit the company’s ability to reduce debt,” said Mariya Moore, a Moody’s analyst, in a press release.

The outlook remains stable.

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