Moody’s revises Techniplas to stable

Moody's Investors Service said it assigned a definitive B3 corporate family rating and a B3-PD probability of default rating to Techniplas, LLC.

Concurrently, the agency assigned a definitive Caa1 (LGD4) rating to the $175 million senior secured notes issued by Techniplas, LLC and Techniplas Finance Corp.

The outlook was changed to stable from positive.

Moody’s said the decision to change the outlook to stable from positive reflects its concern that Techniplas may face additional operating challenges to meet credit metrics that would be commensurate for an upgrade over the next few quarters.

The stable outlook balances the positive effects from the Weidplas acquisition and Moody's expectation of gradually improving free cash flow generation from 2016 onwards with the challenge to successfully turn around Weidplas, the agency added.

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