Moody's downgrades Zellis

Moody's Investors Service said it downgraded all of the ratings on Colour Bidco Ltd. (Zellis) to Caa1 from B3, including the corporate family rating and the instrument ratings on the senior secured first lien facilities.

Moody's also said it downgraded its probability of default rating to Caa1-PD from B3-PD.

The outlook is stable.

The downgrades were driven by the company's significantly negative free cash flow generation in the last 12 months to January 2019, the agency said.

The downgrades also consider its weaker-than-expected liquidity position at the end of January 2019 and the further increase in adjusted leverage to 8x as of January 2019, Moody's said.

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