Moody’s changes Lycra view to negative

Moody's Investors Service said it changed Eagle Intermediate Global Holding BV’s (d/b/a the Lycra Co.) outlook to negative from stable.

“The negative outlook reflects the Lycra Co.’s earnings deterioration and increased debt leverage as a result of sales volume decline and foreign currency depreciation. The weaker credit profile of its parent company, Shandong Ruyi Technology Group Co., Ltd. (B2 negative), also weighs on the Lycra Co.’s rating," said Jiming Zou, a Moody’s vice president and lead analyst for the company, in a press release.

Moody’s also affirmed the company’s B1 corporate family rating and the B1 ratings on Lycra’s senior secured notes.

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