Moody's may drop MI Developments

Moody's Investors Service said it placed the senior debentures of MI Developments Inc. (Ba1) on review for possible downgrade.

Moody's said its rating action reflects the persistent financial issues causing Magna Entertainment Corp. to file for Chapter 11 bankruptcy protection on March five and the accelerated pressures in the automotive sector.

The agency added that MI Developments has a 54% equity stake and controls 96% of the votes of Magna.

In its review, Moody's said it will assess the ultimate structure of MI Developments and Magna as a result of the bankruptcy and the effects on MI Developments' portfolio and credit metrics.

© 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.