Moody’s downgrades Techniplas

Moody's Investors Service said it downgraded the corporate family rating of Techniplas, LLC to Caa1 from B3 and probability of default rating to Caa1-PD from B3-PD.

Moody's also said it downgraded the rating of the $175 million senior secured notes issued by Techniplas, LLC and Techniplas Finance Corp. to Caa2 from Caa1.

The outlook is stable.

The downgrades reflect clearly weaker-than-expected performance during 2015, which left the group with a very weak financial profile, the agency said.

While the company’s operating performance was improved during the first quarter of 2016, Moody’s said it believes that it is unlikely for Techniplas to achieve credit metrics in line with the requirements for a B3 rating.

The ratings also are constrained by a relatively high leverage of about 7.5x expected in 2016, the agency said.

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