Moody’s downgrades Officine Maccaferri

Moody’s Investors Service said it downgraded the probability of default rating of Officine Maccaferri SpA to Ca-PD/LD from Caa3-PD and its corporate family rating to Ca from Caa3 after the company has missed the payment of its interest following the expiration of the grace period.

Moody’s also downgraded to Ca from Caa3 the rating of the €190 million senior unsecured notes due June 2021 issued by Maccaferri. The outlook remains negative.

“Today’s rating action reflects the fact that Maccaferri has not cured the missed interest payment on its notes within the 30-day grace period, which constitutes a default under Moody’s definition, and paves the way for a debt restructuring on distressed terms,” said Igor Kartavov, Moody’s lead analyst for Maccaferri, in a press release.

“Failure to pay interest on the notes stems from the company’s very weak liquidity due to its constrained access to external financing and deterioration in payment terms on the back of the debt restructuring process pursued by Maccaferri’s parent company,” Kartavov said.

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