Moody’s cuts Mountain Province Diamonds

Moody’s Investors Service said it downgraded Mountain Province Diamonds Inc.’s corporate family rating to Caa3 from Caa1, probability of default rating to Caa3-PD from Caa1-PD, and second-lien secured rating to Caa3 from Caa1. The company’s speculative grade liquidity rating remains SGL-4, and the outlook remains negative.

The downgrade reflects Moody’s view the company will be challenged to repay its revolver borrowings as per its waiver, given the diamond market and the pandemic, Moody’s said.

Mountain Province said it is continuing talks with its major shareholder and other financial institutions to secure added debt facilities to repay the lenders and meet short-term obligations, 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.