Moody's cuts Concordia Bus notes to Ca

Moody's Investors Service said it downgraded the ratings of Concordia Bus AB.

Moody's cut Concordia Bus's senior implied rating to Caa3 from Caa1, €160 million senior subordinated notes to Ca from Caa3 and senior unsecured issuer rating to Ca from Caa2.

The downgrade reflects the expectation of a debt restructuring following the group's default in payment of the interest coupon due on the senior secured notes due Feb. 1, according to Moody's. A payment of only 83% of the full amount payable was made, and the company is availing itself of the grace period of one month to consider its options in respect of the remaining balance.

Given the group's very limited liquid resources, Moody's said it believes that the interest payment due on the subordinated notes on Feb. 15 will also not be made.

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