Moody’s views Armor Iimak negatively

Moody’s Investors Service said it changed its outlook for Armor Iiamk to negative from stable and affirmed the B2 ratings on the company and its €450 million senior secured term loan B and its €85 million senior secured revolving credit facility.

“The negative outlook balances the ongoing high leverage from adverse market conditions with a generally good growth outlook. We see risks that the market conditions could remain weak and delay the expected leverage reduction in the coming 12-18 months. It also reflects our expectation that the company will not undertake any large debt-funded acquisitions or shareholder distribution as well as maintaining an adequate liquidity,” the agency said in a press release.

Moody’s said it expects the company’s adjusted debt/EBITDA to stay above 6x for the next 12-18 months, which is outside a B2 rating’s requirements.

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