Moody's cuts Sensient to junk

Moody's Investors Service said it downgraded Sensient Technologies' senior unsecured debt to Ba1 from Baa2, including its $150 million senior unsecured notes due April 1, 2009, and assigned a stable outlook.

Moody's said the downgrade is based upon: (1) Sensient's weakening operating performance; (2) the increased level of price competition and reduced profitability in key parts of its business and the company's difficulty in effectively adapting to a changing industry environment; (3) weak free cash flow, debt protection measures and financial flexibility for its rating category and business profile; and (4) the very low probability that Sensient can reduce leverage and improve its debt protection measures over the rating horizon to levels acceptable for its previous 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.