Moody’s cuts Doncasters, facilities

Moody's Investors Service said it downgraded Doncasters Group Ltd.’s corporate family rating to B3 from B2 and probability of default rating to B3-PD from B2-PD.

Concurrently, the agency downgraded the senior secured ratings assigned to Doncasters Finance US LLC’s first- and second-lien facilities to B3 from B2 and to Caa2 from Caa1, respectively.

The outlook remains negative.

"Our decision to downgrade the rating of Doncasters to B3 takes into account that the company's actual performance in 2016 fell behind Moody's expectations and resulted in very high financial leverage of 10.6x debt/EBITDA as of March 2017 with limited visibility as to the pace and extent of the turnaround," Oliver Giani, Moody's vice president, senior analyst and lead analyst for Doncasters, said in a news release.

"The decision to downgrade was also driven by a weakening liquidity profile due to increased reliance on the groups revolving credit facility and our expectation of negative free cash flow for 2017."

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