Moody’s trims Technicolor

Moody's Investors Service said it downgraded Technicolor SA's corporate family rating to Caa3 from Caa2, probability of default rating to Caa3-PD from Caa2-PD and ratings on the senior secured bank credit facilities maturing 2023 to Caa3 from Caa2.

The ratings remain under review for further downgrade.

The agency said the company was already weakly positioned in its previous rating category considering its highly-leveraged capital structure per end of the last fiscal year and a weak liquidity profile.

Furthermore, the downgrade reflects the increasing risk of a capital restructuring, which follows prolonged challenges pre the outbreak of Covid-19 in most of Technicolor's markets, evidenced by the company's weak operating performance and in particular by strongly negative free cash flow generation leading to a tight liquidity and weakening credit metrics, the agency added.

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