Moody’s cuts Aenova, loans

Moody's Investors Service said it downgraded Apollo 5 GmbH's (parent company of Aenova Holding GmbH) corporate family rating to Caa1 from B3 and probability default rating to Caa1-PD from B3-PD.

The outlook is stable.

"Aenova's downgrade reflects deterioration in its credit metrics, as a result of weaker than estimated 2015 operating performance, and its 2015 negative free cash flow generation before one-off exceptional proceeds, owing to significant expenditure from its restructuring program and interest costs. Due to the high level of debt in the capital structure, any improvements in these metrics will take several years and remain contingent to the achievement of the company's operational improvement plan," Moody's vice president, senior analyst Donatella Maso said in a news release.

Concurrently, the agency downgraded the €500 million equivalent first-lien term loan due 2020 to B3 from B2, the €50 million revolving credit facility due 2020 to B3 from B2 and the €139 million second-lien term loan due 2021 to Caa3 from Caa2, all borrowed by Aenova Holding GmbH and its subsidiaries.

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