Moody’s Downgrades Amer Debt on Leverage, Weak Outlook
The ratings agency dropped Amer two levels from B1 to B3, the lowest speculative grade possible, citing an expected steep decline in revenue as a result of the coronavirus outbreak and the likelihood that its already high leverage will increase and require Anta and the other members of the consortium that controls it to inject fresh equity. The ratings apply to Amer’s €1,700 million term loan and a €315 million revolver. Moody’s believes the prospects for weak cash generation in the seasonally weak H1 will be magnified by the pandemic, producing a likely breach of its covenants and a possible ... Log in to view full article.