Moody’s cuts Power Machines to B2

Moody's Investors Service said it downgraded the corporate family rating and the probability of default rating of Power Machines PJSC to B2 from B1 and B2-PD from B1-PD, respectively.

The outlook is negative. The action concludes the review process that was initiated on April 4.

Moody’s said the downgrade reflects its expectation that Power Machines’ already weak financial profile – as reflected by leverage in the high single digits and a sizable negative free cash flow – will likely deteriorate further in 2017, with limited prospects of a material recovery.

Moreover, the agency said it is concerned that such deterioration will create pressure on the company's liquidity.

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