Moody’s lowers WFS Global, notes

Moody's Investors Service said it downgraded WFS Global Holding SAS’ corporate family rating to B3 from B2 and probability of default rating to B3-PD from B2-PD.

The agency also downgraded the company’s €325 million 9˝% senior secured notes due 2022 to B3 from B2 and €140 million 12˝% senior unsecured notes due 2022 to Caa2 from Caa1.

The outlook on all ratings is stable.

Moody’s said the action primarily reflects the following drivers: (a) The weakening of the company's financial metrics and liquidity following its M&A and new business activities; and (b)uncertainty associated with the departure of the senior management team including the company's founder and long-standing Group CEO.

The corporate family rating downgrade to B3 reflects Moody's view that WFS' risk profile and financial metrics have weakened since the acquisition of Consolidated Aviation Services in February 2016.

The new business activities undertaken by WFS in Spain, Italy, U.S. and Germany resulted in significant year-on-year revenue growth, but also caused a negative impact on the company's profitability and liquidity, the agency added.

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