Moody’s drops iEnergizer CFR, loans

Moody's Investors Service said it downgraded the corporate family and senior secured bank credit facility ratings of iEnergizer Ltd. to B3 from B2 and placed the ratings under review for further downgrade.

"The rating action follows iEnergizer's weak earnings for the fiscal year ended 31 March 2015 (FY2015) that required an equity cure to prevent a covenant breach, and the unexpected resignation of its chief financial officer, Neil Campling," Moody's vice president and senior analyst Kaustubh Chaubal said in a news release.

The ratings remain under review for further downgrade because, without a significant expansion of its EBITDA, the company will struggle to remain compliant with its tight covenants.

"The likelihood of a covenant breach has increased; a failure to cure any covenant breaches would result in an event of default which, if triggered, will result in an acceleration of repayment of the bank facilities," Chaubal added in the release.

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