Moody’s cuts Boparan, notes to Caa1

Moody's Investors Service said it downgraded Boparan Holdings Ltd.’s corporate family rating to Caa1 from B3 and probability of default rating to Caa1-PD from B3-PD.

Concurrently, the agency downgraded the ratings on the senior unsecured notes issued by Boparan Finance plc to Caa1 from B3.

The outlook on all ratings was changed to stable from negative.

"The downgrade of Boparan's ratings to Caa1 reflects further deterioration in the company's operating performance during the second quarter of its fiscal year 2017-18 and our expectations that EBITDA generation over the coming quarters will remain weaker than our assumptions at the time of the rating downgrade to B3 in November last year," Paolo Leschiutta Moody's senior vice president and lead analyst for Boparan, said in a news release.

"Although the recently announced disposal of Goodfella's will have a positive impact on the company's net debt position and will reduce somewhat the refinancing risk in relation to the £250 million notes due in July 2019, the Caa1 rating signals our concerns that the capability to improve profitability remains subject to significant execution risks while market conditions remain challenging."

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