Moody's lowers Ineos

Moody's Investors Service said it has downgraded the corporate family rating of Ineos Group Holdings plc to B3 from B1, the senior first-lien facilities were downgraded to B2 from Ba3, the second-lien facilities were downgraded to Caa2 from B3 and the senior guaranteed notes and legacy notes at Ineos Vinyls were downgraded to Caa2 from B3.

The ratings were also placed under review for further downgrade following the announcement made by the company on Nov. 17 that it has initiated discussions with its senior creditors to obtain a waiver for some of its financial covenants, the agency said.

Moody's noted that following the rapid decline in oil prices, the company's reported EBITDA is likely to be further affected by a significant negative inventory holding adjustment, which is likely to restrict the headroom under some of the company's financial covenants.

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