Moody’s downgrades Pinnacle

Moody's Investors Service said it downgraded Pinnacle Holdco Sarl's (Paradigm) corporate family rating to Caa3 from Caa1, probability of default rating to Caa3-PD and the facility ratings on its first- and second-lien debt to Caa2 (LGD3) and Ca (LGD6), respectively.

The outlook remains negative.

Moody’s said the two-notch downgrade, to a corporate family rating of Caa3, reflects Paradigm's deteriorating liquidity position, which the agency views as having a high probability of being exhausted by year-end 2017.

Also, without intervention from the company's sponsor in the form of an equity cure, there is a high likelihood of a minimum-EBITDA covenant breach by as soon as its next measurement date, for the period ended Sept. 30.

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