Moody's downgrades CIBT

Moody's Investors Service said it downgraded CIBT Global, Inc.'s corporate family rating to Caa1 from B3 and its probability of default rating to Caa1-PD from B3-PD. Concurrently, Moody's downgraded the instrument rating on CIBT's senior secured first-lien rating to B3 from B2 and senior secured second-lien rating to Caa3 from Caa2. Also, Moody's changed the rating outlook to negative.

The ratings downgrade and negative outlook reflect Moody's expectation CIBT's earnings and cash flow will weaken over the next 12 months amid the rising Covid-19 risk and uncertainties around the global economic outlook. Demand for corporate travel is expected to decline in 2020, exacerbating pressure on the company's already weak credit metrics.

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