Moody's: Cognor view negative

Moody's Investors Service said it changed the outlook for Cognor SA to negative from stable.

The company's corporate family and probability of default ratings remain Caa2 and the rating for the €120 million of senior secured notes due January 2014, issued by the company's finance subsidiary Zlomrex International Finance SA, was also affirmed at Caa2 (LGD4-53%).

"The negative outlook reflects Cognor's weak operating performance in the wake of declining steel demand and prices in Europe but also in Poland, its largest market, and how these challenging fundamentals may affect the company's ability to arrange new financing needed to retire its senior secured notes when they come due on Jan. 2, 2014," Moody's senior vice president and lead analyst for the EMEA steel industry Steven Oman said in a news release.

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