Moody’s Investors Service announced that it has downgraded the Probability of Default Rating (PDR) for Cinram International to D from Caa3 as a result of its filing for reorganization under the Companies’ Creditors Arrangements Act (CCAA).
Additionally, Moody’s has lowered Cinram’s corporate family rating, senior secured first-out credit facility rating and senior secured second-out credit facilities’ ratings to C, Caa3 and C respectively.
• Corporate Family Rating, downgraded to C from Caa3
• Probability of Default Rating, downgraded to D from Caa3
• Senior Secured First-out Revolving Facility downgraded to Caa3 (LGD3, 31%) from B2 (LGD2, 10%)
• Senior Secured Second-out Revolving Facility downgraded to C (LGD5, 74%) from Caa3 (LGD3, 45%)
• Senior Secured Bank Credit Facility downgraded to C (LGD5, 74%) from Caa3 (LGD3, 45%)
• Speculative Grade Rating, affirmed at SGL-4 (poor)
• Outlook remains Negative