Moody's downgrades SGD Pharma

Moody's Investors Service said it downgraded to B3 from B2 the corporate family rating and to B3-PD from B2-PD the probability of default rating of Silica SAS (SGD Pharma). Concurrently, the agency lowered to B3 from B2 the ratings on the €500 million senior secured first-lien term loan due 2028 and on the €90 million senior secured first-lien revolving credit facility due 2028.

"The downgrade to B3 reflects a weaker-than-anticipated operating performance since the assignment of the first-time ratings, owing to reduced demand and a sharp increase in input and transportation costs," said Donatella Maso, a Moody's vice president, senior credit officer, and lead analyst for SGD Pharma, in a press release.

"This weak performance has led to a material increase in leverage to levels no longer consistent with the previous B2 rating," Maso added.

The outlook remains stable.

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