Moody’s cuts Frigoglass, notes to Caa3

Moody's Investors Service said it downgraded Frigoglass SAIC's corporate family rating to Caa3 from Caa1 and probability of default rating to Caa3-PD from Caa1-PD.

Concurrently, the agency downgraded the senior unsecured rating assigned to the notes due 2018 issued by Frigoglass Finance BV to Caa3 from Caa1.

The outlook remains negative.

Moody’s said the actions reflect the increased risk that Frigoglass will not meet its debt obligation upon maturity of its revolving credit facility and shareholder's loan in March 2017 and the agency’s view that a potential default, for example through a distressed exchange under Moody's definition of default, has become more likely.

The Caa3 corporate family rating reflects, in addition to the increased default risk, the limited recovery expectation, in case of a default, for the senior unsecured debt, the agency added.

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