Moody’s cuts Bis Industries CFR, Artsonig notes

Moody's Investors Service said it downgraded the corporate family rating of Bis Industries Group Ltd. to B3 from B2.

At the same time, the agency downgraded the rating on Artsonig Pty. Ltd.’s $250 million five-year senior unsecured PIK notes to Caa2 from Caa1. Artsonig is a wholly owned subsidiary of Bis Industries.

All outlooks were changed to negative.

"The downgrade in the ratings reflects the continued challenging conditions for companies operating in the resources sector and which is leading to Bis' credit profile deteriorating to a level that is no longer consistent with the previous rating," Moody's analyst Saranga Ranasinghe said in a news release.

"We expect operating conditions for the resources sector will remain weak through 2016 as mining companies continue to focus on cost savings programs in the current depressed price environment, increasing the uncertainty around Bis' ability to improve earnings and de-lever."

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