Moody's changes Goodpack view to negative

Moody's Investors Service said it revised the outlook for IBC Capital Ltd.'s (Goodpack) to negative from stable and affirmed the B2 corporate family rating.

At the same time, Moody's affirmed the B2 senior secured rating on the $610 million first-lien term loan due in September 2023 and the B3 rating on the $155 million second-lien term loan due in September 2024.

These loans are issued by Goodpack as the Parent Borrower and IBC Capital US LLC as the U.S. co-borrower, and substantially guaranteed by all subsidiaries.

"The negative outlook reflects our expectation for a weakening in Goodpack's operating performance through 2020 amid ongoing challenges in the global tire industry," said Stephanie Cheong, a Moody's analyst, in a press release.

"The spread of the coronavirus has led to weaker consumer sentiment and a scale back in tire production across the world, both of which will lead to reduced demand for Goodpack's solutions," added Cheong.

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