Moody's lowers CE Wood

Moody's Investors Service said it downgraded CE Wood's long-term national scale corporate family rating to Ba3.cz from Ba1.cz.

The outlook remains negative.

According to Moody's, the downgrade reflects continuing pressure on the company's financial performance and credit protection metrics resulting from the low logging volumes awarded to CE Wood and the oversupply to the market.

The downgrade also considers negative free cash flow generation in the past four fiscal periods and the company's aggressive approach to liquidity management, the agency said.

The negative outlook reflects CE Wood's constrained liquidity profile, which relies on a turnaround in cash generation to a substantial positive amount this year, Moody's added.

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