Moody’s trims Pro-Gest, revises view to negative

Moody’s Investors Service said it downgraded Pro-Gest SpA’s corporate family rating to B3 from B1, its probability of default rating to B3-PD from B1-PD and the rating on the company's €250 million senior notes due 2024 to Caa1 from B2.

The action was prompted by the sharp deterioration in the company’s performance and liquidity due to lower selling prices, which led to a build-up of its inventory, the uncertainty on when the production activities in Mantova will be resumed and the recent €47.5 million fine from the Italian anti-trust authority.

The rating downgrade and negative outlook also reflect a potential breach of financial covenants at year end on part of the company's financial debt, said Donatella Maso, Moody’s lead analyst for Pro-Gest, in a press release.

Moody’s revised the outlook to negative from stable.

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