Moody’s pares Parques

Moody’s Investors Service said it downgraded the corporate family rating of Piolin II Sarl (Parques) to Caa1 from B3 and the probability of default rating to Caa1-PD from B3-PD.

Concurrently, Moody’s downgraded the ratings on the €1.17 billion guaranteed senior secured term loan B due 2026, which includes the €970 million guaranteed senior secured term loan B and the €200 million incremental guaranteed senior secured term loan B2, and €200 million guaranteed senior secured revolving credit facility due 2026 to Caa1 from B3 issued by Piolin BidCo, SAU.

The Caa1 rating reflects the forecasted weaker operating performance for Parques in 2020 against the initial expectation and the expected slower demand recovery in 2021, resulting in continued negative free cash flow generation, Moody’s said.

Parques is expected to raise an added €30 million in government loans before the end of the year, which should help it handle reduced demand until next summer, the agency said.

The outlook is negative.

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