Moody’s downgrades Moby, notes

Moody's Investors Service said it downgraded Moby SpA's corporate family rating to B2 from B1, probability of default rating to B2-PD from B1-PD and €300 million worth of senior secured notes to B1 from Ba3.

The outlook remains negative.

"The downgrade reflects Moby's continued operational weakness which has translated into a higher leverage than we had previously anticipated and a reduced free cash flow," Guillaume Leglise, Moody's assistant vice president and lead analyst for Moby, said in a news release.

“The negative outlook also incorporates our expectation of a weakening liquidity profile with reduced covenant cushion in our view and fairly large upcoming debt repayments which will weigh on the company's financial flexibility over the next 12 to 18 months."

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