Moody's downgrades Ontex IV

Moody's Investors Service said it downgraded the corporate family rating and probability of default rating of Ontex IV SA to B2 from B1.

Concurrently, the rating for the €600 million senior secured notes maturing in 2018 has been downgraded to B1 from Ba3 and the rating for the €235 million senior unsecured notes maturing in 2019 has been downgraded to Caa1 from B3.

The outlook is stable.

"The rating downgrade reflects Ontex's weaker-than-expected operating performance over recent quarters," Moody's lead analyst for Ontex, Anke Rindermann, said in a news release.

"This is a result of a highly competitive market environment, pressure from input cost inflation and adverse foreign exchange movements," Rindermann added in the release.

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