Moody's downgrades Wittur

Moody's Investors Service said it downgraded Wittur Holding GmbH’s debt facilities, including the ratings on the €565 million backed senior secured first-lien term loan B and €90 million backed senior secured first-lien revolving credit facility to B3 from B2 and the rating on the €240 million backed senior secured second-lien term loan to Caa3 from Caa2.

Concurrently, the agency lowered the corporate family rating to Caa1 from B3 and probability of default rating to Caa1-PD from B3-PD of Wittur’s parent Wittur International Holding GmbH. The outlook for both entities changed to stable from negative.

“The downgrade of the CFR to Caa1 reflects an extended period of time in which Wittur's operating performance and credit metrics did not meet the expectation for its previous B3 rating and Moody's concerns about the speed of Wittur's deleveraging to a more sustainable level, given the increased uncertainty of the business environment in which the company operates,” Moody’s said in a press release.

The outlook reflects the company's still adequate liquidity position with low refinancing risk, given no meaningful debt maturities before 2026, the agency said. As of the end of December, Wittur operated with €81.6 million of cash on the balance sheet, and an undrawn €70 million available on its revolver.

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