Fitch cuts Officine Maccaferri, debt to B-

Fitch Ratings said it downgraded Officine Maccaferri SpA's long-term issuer default rating and senior unsecured rating to B- from B; the recovery rating is RR4/50%.

The outlook is stable.

“The downgrade reflects Officine Maccaferri's high leverage, which is outside our negative rating guidelines,” Fitch said in a news release.

“Deterioration in both margins and cash flow generation has resulted in financial metrics that no longer support a B rating. Although management has taken actions to increase the company's global industrial and operational footprint, Fitch expects challenging market conditions to persist in some key markets of Latin America and Europe, preventing a swift deleveraging.”

The senior unsecured bond rating reflects the agency’s recovery analysis of the company on a going concern basis. However, as some of the assets are domiciled in countries with a RR4 cap, Fitch said it uses a 50% recovery to arrive at a recovery rating of RR4, resulting in the equalization of the senior unsecured debt rating with the issuer default rating.

© 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.