Moody’s changes AFE view

Moody's Investors Service said it affirmed AFE SA Sicav-Raif's Caa2 long-term corporate family rating and its Caa3 backed senior secured rating.

Moody's also changed the outlook on AFE to positive from negative.

The agency said the action follows completion of the company’s capital restructuring on Feb. 9.

The restructuring was enabled because 95.6% of the existing bondholders gave consent on Jan. 8 to a backed senior secured note extension, which Moody's categorized as a distressed exchange.

“The positive outlook reflects Moody's expectation of gradual resumption of investments and stronger collections by AFE, which will gradually improve the company's revenue generation and debt servicing capacity enabling a reduction in presently elevated leverage levels,” the agency said in a news release.

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