Moody's: Impress outlook negative

Moody's Investors Service said it affirmed Impress Holdings BV's corporate family rating at B1, its €610 million senior secured notes due 2013 and $175 million senior secured notes due 2013 at Ba3 and its €250 million senior subordinated notes due 2014 at B3.

It also downgraded the loss-given-default assessment on the senior secured notes to LGD3 (42%) from LGD3 (38%) and on the senior subordinated notes to LGD6 (90%) from LGD5 (89%).

The outlook was changed to negative from stable.

Moody's said the affirmation reflects Impress' solid performance in 2008 despite a challenging environment with volatile input costs and declining volumes in some segments.

At the same time, the outlook change to negative reflects the agency's opinion that the recessionary environment will make it increasingly challenging to achieve further improvements in credit metrics. Moody's said the outlook also considers the ongoing challenge to manage volatile raw material prices.

The B1 rating remains supported by Impress' leading market positions in some metal packaging segments, relatively stable end markets, a diversified customer base and a substantial portion of the portfolio underpinned by long-term and/or price-pass-through contracts, the agency said.

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