Moody’s cuts Exterion, facilities to Caa1

Moody's Investors Service said it downgraded Exterion Media's (rated at Doubleplay I Ltd.) corporate family rating to Caa1 from B3, probability of default rating to Caa2-PD from Caa1-PD and the rating on the senior secured bank credit facilities issued by Exterion Media Holdings Ltd. to Caa1 from B3.

Concurrently, the agency changed the outlook to negative from rating under review.

The action concludes the review initiated in November, following the downgrade of the company's corporate family rating to B3 from B1.

"The ratings downgrade reflects the lack of a clear and sustainable solution to Exterion Media's very limited headroom under the net leverage financial covenant included in its credit facilities," Christian Azzi, Moody's assistant vice president, analyst and lead analyst for Exterion, said in a news release.

"While Exterion Media's performance has improved over the last two months, visibility on operating performance of its UK business in 2018 and demand for the company's French billboard assets remain low. With a scheduled covenant step-down in June 2018 looming, the long-term sustainability of the current capital structure, including maintaining access to the revolving facility for liquidity needs, remains uncertain."

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