Moody's cuts CEVA Logistics

Moody's Investors Service said it downgraded CEVA Logistics AG’s ratings, including corporate family rating and probability of default ratings to Caa1 and Caa1-PD, from B3 and B3-PD, respectively and the senior secured credit facilities to Caa1 from B3.

Concurrently, Moody’s said it changed the outlook to negative from stable.

“The rating downgrade of CEVA’s CFR reflects the expected pressure on the company’s credit metrics due to the coronavirus epidemic. As a result, Moody’s adjusted Debt/EBITDA, estimated at 5.8x as of December 31, 2019, is likely to increase while free cash flow generation will be negative in 2020, resulting in credit metrics which will be below the requirements for the previous B3 rating category. As such, the net leverage financial covenant cushion will weaken over the coming quarters,” Moody’s said in a press release.

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