Moody's lowers MDC Partners

Moody's Investors Service said it downgraded MDC Partners Inc.'s corporate family rating to B2 from B1.

The probability of default rating was also downgraded to B2 from B1 and the $345 million senior unsecured note was downgraded to B3 from B2.

The outlook was changed to stable from negative.

Moody's said the downgrades reflect recent weak operating performance and Moody's view that while leverage is expected to improve from current levels under our base case scenario, it will not decrease to a level consistent with a B1 corporate family rating over the rating horizon.

The downgrades also reflect the weak free cash flow after deferred acquisition consideration payments, the agency said.

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