Moody’s snips GreenSquare

Moody's Investors Service said it downgraded GreenSquareAccord Ltd.’s long-term issuer and senior secured debt ratings to Baa1 from A3 and changed the outlook to stable from negative.

“The downgrade reflects GreenSquareAccord's very tight covenant headroom, which Moody's views as an important governance risk facing the group, and high debt combined with low profitability and interest coverage ratios. The tight covenant headroom limits the group's funding options, including increasing debt, as well as constraining the use of its high liquidity in the event of unexpected financial pressure.

“The group is proactively addressing its weak operating performance having already divested of its home care operations and some care and support contracts, but, in Moody's opinion, material improvements will take several years,” the agency said in a press release.

The revised outlook balances a forecast for debt metrics that will remain weak but stable at current levels, Moody’s said.

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