Moody’s changes Linxens to negative

Moody's Investors Service said it changed the outlook on the ratings of Financiere Lully C (Linxens) and on the rated instruments raised by its subsidiaries to negative from stable.

Concurrently, the agency affirmed Linxens' B2 corporate family rating and B2-PD probability of default rating.

In addition, Moody's affirmed the B1 instrument rating assigned to the $544.9 million first-lien term loan B-3 raised by Lully Finance LLC and to the €440 million first-lien term loan B-4 and €125 million revolving credit facility raised by Lully Finance Sarl. It also affirmed the Caa1 instrument rating assigned to the $200.6 million second-lien term loan B-1 raised by Lully Finance LLC and to the €35 million second-lien term loan B-2 raised by Lully Finance Sarl.

Moody’s said the negative outlook reflects its expectation that a gradual recovery in demand for connectors and antennas/inlays in 2018 might not be sufficient to support a reduction in Linxens' adjusted gross leverage to or below 6 times within the next 12 months leaving the company weakly positioned within the B2 rating category for a prolonged period of time.

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