Moody’s revises SoLocal to stable

Moody's Investors Service said it changed the outlook on the ratings of SoLocal Group SA to stable from positive.

Concurrently, the agency affirmed the company’s B3 corporate family rating, B3-PD probability of default rating and the B3 rating on its €398 million senior secured notes due 2022.

"The decision to change the outlook on SoLocal's ratings reflects the company's weaker than expected operating performance in 2017 as internet revenue growth and EBITDA targets have been missed," Colin Vittery, Moody's vice president, senior credit officer and lead analyst for SoLocal, said in a news release.

"New management plans to transform the company's business model, product offer and cost base aiming to stabilize recurring EBITDA in 2018, but significant operational restructuring costs will limit free cash generation in the next 2 years and the business operates with limited liquidity."

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