Moody's lowers MetoKote

Moody's Investors Service said it downgraded MetoKote's Corp.'s corporate family rating to B3 from B2, probability-of-default rating to Caa1 from B3 and first-lien senior secured credit facilities to B3 (LGD3, 35%) from B2 (LGD3, 33%).

The outlook was revised to negative from stable.

"We expect that MetoKote's run-rate credit metrics over the next 6-12 months would no longer support a B2 rating," John Zhao, Moody's analyst, said in a statement.

The downgrade reflects the intensifying challenges facing MetoKote's top-line due to a precipitous and potentially prolonged decline in production volume in the automotive industry in North America, according to the agency.

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