Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers M > Headlines for Magnetation LLC > News item |
Moody's downgrades Magnetation
Moody's Investors Service said it downgraded Magnetation LLC's corporate family rating to Caa2 from B3, probability of default rating to Caa2-PD from B3-PD and $425 million senior secured notes to Caa2 (LGD4) from B3 (LGD4). The outlook is negative.
The agency said the downgrade and negative outlook reflects Magnetation's weak credit metrics and deteriorated liquidity position as a result of volatility and weakness in iron ore prices. Magnetation has retained Blackstone Group as a financial adviser to assist in evaluating options available to improve liquidity and the capital structure.
The Caa2 corporate family rating reflects Magnetation's elevated leverage, low interest coverage, recent operating weakness, short operating history, small scale and low level of revenue and EBITDA, Moody’s said.
Magnetation's ratings are supported by the company's strong profit margins, attractive off-take contracts and lack of near-term debt maturities, 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.