Fitch downgrades BBD Parentco

Fitch Ratings said it downgraded BBD Parentco Ltd.’s long term issuer default rating to B- from B and the outlook is negative. Fitch also downgraded the first-lien debt facilities issued by BBD Bidco Ltd. to B-/RR4 from B+/RR3.

“The downgrade reflects our view that funds from operations (FFO)-adjusted gross leverage will breach Fitch Ratings’ negative sensitivity guideline at 8x at end-2020 and remain above that level until at least FY22 (year ending March 2022),” Fitch said in a press release.

“The negative outlook reflects our concern that liquidity will become tight during FY21 due to the Covid-19-induced operational shutdowns in most of BCA’s (operating entity) core geographies. Significant cash outflows are expected during this period to cover fixed costs,” Fitch said.

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