Moody’s downgrades Hema

Moody’s Investors Service said it downgraded to Ca from Caa3 the corporate family rating of Hema BV. Concurrently, the rating agency downgraded Hema’s probability of default rating to C-PD from Caa3-PD.

Moody also downgraded to Caa3 from Caa2 the €600 million of senior secured floating rate notes due 2022 issued by HEMA Bondco I BV and to C from Ca the €150 million senior unsecured notes due 2023 issued by HEMA Bondco II BV.

“The decision to downgrade Hema and to maintain the negative outlook reflects the company’s announcement of a debt restructuring transaction, which is likely to take place before the end of the year. The company’s capital structure, which was already extremely weak, has become unsustainable with the rapid and widening spread of the coronavirus outbreak and the operational disruptions associated with the outbreak,” said Francesco Bozzano, Moody’s lead analyst for Hema and assistant vice president, in a press release.

The outlook for all entities remains negative.

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