Moody’s might drop Oxea

Moody's Investors Service said it placed the B2 corporate family rating and B2-PD probability of default rating of Oxea Sarl, the ultimate holding company of the subsidiary guarantors to the group's senior secured credit facilities, as well as the B1 rating on the first-lien senior secured credit facility and the Caa1 rating on the second-lien senior secured credit facility due 2020 at subsidiary Oxea Finance & Cy SCA (OF) on review for downgrade.

Moody’s said the announcement follows Oxea's continued weak operating performance since the completion of Oman Oil Co.’s (unrated) acquisition of Oxea from private equity firm Advent International Corp. Credit metrics are extremely weak for the current rating and significantly worse than Moody's expectations, with Moody's adjusted debt/EBITDA increasing to 7.6 times for the last 12 months ended June 2014.

Performance has suffered as a result of a difficult economic environment in Europe, declines in exports to Asia, as well as the turnaround of Oxea's Bay City plant and subsequent unplanned outage, competitive pressures, a strong Euro and a severe winter in the U.S., 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.