Moody's lowers GATE to Caa1

Moody's Investors Service said it downgraded Global A&T Electronics Ltd.'s (GATE) corporate family and first-lien senior secured ratings to Caa1 from B2.

The outlook is negative.

"The downgrade reflects GATE's weak operating performance which remains below our expectation," Moody's vice president and senior analyst Annalisa Di Chiara said in a news release, "reflecting significantly lower revenues this year, softer market demand and continued price erosion, particularly in analogue where it is trying to maintain or win back market share. We expect these unfavorable operating conditions to persist into 2014 and to be exacerbated by the uncertainty surrounding the ongoing dispute with bondholders."

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