Moody’s Investors Service (“Moody’s”) has today announced a downgrade of Perstorp Holding AB’s corporate family rating (CFR) and probability of default rating (PDR) to B3 and B3-PD respectively from B2 and B2-PD.
The downgrade of Perstorp’s ratings reflects the company’s high debt level. Moody’s adjusted gross leverage of around 7.4x based on preliminary 2019 results published by Perstorp, and the expectation that the company’s leverage will further increase from current levels in 2020. The rating positively acknowledges the measures Perstorp is taking to maintain its liquidity profile but expects that Perstorp’s revenues and profitability will face further pressure, as the rating agency would expect the current Covid-19 outbreak to translate into weaker demand in 2020.
Find Moody's press release here >>