Moody's downgrades Frigoglass

Moody's Investors Service said it lowered Frigoglass SAIC's corporate family rating to Caa2 from Caa1 and its probability of default rating to Caa2-PD from Caa1-PD. Concurrently, the agency downgraded to Caa2 from Caa1 the rating on the €260 million of guaranteed senior secured notes due 2025 issued by Frigoglass Finance BV and changed the outlook on both entities to negative from stable.

“The downgrade of the CFR to Caa2 reflects the expected deterioration in liquidity and financial performance resulting from the Russia-Ukraine conflict. Significant weakening in liquidity and operational challenges increase the risk of Frigoglass' default on its obligations, including the coupon payment on its €260 million guaranteed senior secured notes,” the agency said in a press release.

The outlook reflects the uncertainties related to Frigoglass’ ability to tackle its operational challenges related to the Russia-Ukraine conflict and the limited ability to operate its Romanian plant, which could mean increasing deterioration of the liquidity profile, Moody’s said.

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