Moody’s lowers LABL

Moody's Investors Service (Moody's) downgraded LABL, Inc.'s (doing business as Multi-Color Corp.) corporate family rating to Caa1 from B3, its probability of default rating to Caa1-PD from B3-PD, its senior secured credit facility, including the revolver and the term loans, to B3 from B2, and its senior secured notes to B3 from B2. Finally, the agency lowered the company's senior unsecured notes to Caa3 from Caa2.

"The downgrade reflects softer demand for consumer packaged goods, including food, beverage, home & personal care products, that is affecting Multi-Color's profit and cash flow generation," said Motoki Yanase, vice president and senior credit officer at Moody's, in a press release.

"Despite the time to the next maturity wall in 2026, it is becoming increasingly challenging for the company to generate sufficient free cash flow to pay down debt and reduce leverage, with a highly stretched balance sheet and interest burden," added Yanase.

The outlook remains negative.

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