Moody’s cuts IGM on missed payment

Moody's Investors Service said it downgraded IGM Resins' (Ignition Topco BV) corporate family rating, and probability of default rating to Ca and Ca-PD/LD from Caa2 and Caa2-PD, respectively, after it missed an interest payment. Concurrently Moody's downgraded the instrument rating of Ignition Midco BV's backed senior secured bank credit facilities to Ca from Caa2.

“The downgrade of IGM Resins' ratings follows the company's announcement of a missed interest payment by the company on its senior secured facilities and Moody's expectations for material impairment for the company's creditors relative to original promise in case of a potential debt restructuring,” the agency said in a press release.

On Thursday, the company announced it skipped the about €13 million interest payment to bolster its liquidity profile and entered a forbearance agreement with more than 50% of the senior secured lenders.

“The /LD designation attached to IGM Resins' PDR reflects that the missed interest payment by the company constitutes a default under Moody's definition. The LD designation will remain assigned until the group resolves the missed interest payment. IGM Resins, its shareholders and its lenders are currently working on the recapitalization of the group,” the agency said.

The outlook is negative.

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