Moody’s cuts Schur Flexibles

Moody’s Investors Service said it dropped its ratings for Schur Flexibles GmbH’s ratings and its €475 million backed senior secured term loan due 2028 and on the €100 million backed senior secured revolver due 2027 to Ca from Caa3.

The downgrades follow Schur and lenders agreeing to a restructuring of the company’s capital structure, through debt write-offs, exchanges of debt for equity and new money, Moody’s said.

The restructuring will result in the lenders becoming the company’s new owners.

"The downgrade to Ca reflects our expectation that if the restructuring completes as planned, it will be considered a distressed exchange, a form of default under Moody's definition. In addition, the downgrade reflects a higher loss given default for Schur's creditors than that assumed in the previous Caa3 rating," said Donatella Maso, a Moody's vice president, senior credit officer and lead analyst for Schur, in a press release.

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