Moody’s cuts Seqens, view to stable

Moody’s Investors Service said it downgraded Seqens Group Holding’s corporate family rating to B3 from B2 and downgraded the probability of default rating to B3-PD from B2-PD. Moody’s also downgraded to B3 from B2 the instrument ratings of its equivalent €647 million senior secured term loans due 2023 and the €90 million senior secured revolver due 2022 raised by Seqens Group Bidco, a direct subsidiary of Seqens.

“Today’s rating action takes into account Seqens’ very high adjusted gross leverage remaining at around 7.2x debt/EBITDA expected for the end of 2019, as a result of weaker than expected operating performance mainly driven by persistent operational issues at the Limay (France) production side in its CDMO division and some smaller issues in its solvent & phenols specialties division,” said Moody’s in a press release.

Moody’s noted liquidity is tight with only €10 million to €15 available on the revolver.

Moody’s changed the outlook to stable from negative.

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