Moody’s alters WEPA trend to negative

Moody's Investors Service said it changed the outlook for WEPA Hygieneprodukte GmbH to negative from stable and affirmed the B1 corporate family rating, the B1-PD probability of default rating and the B2 ratings on the guaranteed senior secured bonds maturing in 2026 and 2027.

“The rating action reflects Moody's revised expectation that the earnings recovery and associated deleveraging will require longer so that Moody's adjusted gross leverage will remain very high in 2022 and may potentially stay above the quantitative downgrade trigger of 5.5x in 2023. Moreover, the pace of deleveraging becomes increasingly uncertain as the volatility of energy prices and the time lag in passing on costs to customers result in significant swings in WEPA's profitability,” the agency said in a press release.

© 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.