Moody’s downgrades ColourOz

Moody's Investors Service said it downgraded ColourOz MidCo's (Flint) corporate family rating to Caa1 from B3 and probability of default rating to Caa1-PD from B3-PD.

Moody's also said it downgraded Colouroz Investment 1 GMBH and FDS Holdings BV’s senior secured first-lien credit facilities and the revolving credit facility to Caa1 from B3.

The rating on Colouroz Investment 1’s senior secured second-lien credit facilities also was downgraded to Caa3 from Caa2.

The outlook is negative.

The downgrades reflects the company's high adjusted debt-to-EBITDA of 8.8x as of December 2018, which further increased to higher than 9x following weaker than expected performance during the first quarter of 2019, Moody’s said.

The negative outlook also considers a risk of deterioration of the company's liquidity profile if the company fails to comply with the springing maturity condition of its revolving credit facility, the agency said.

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