Moody's Feb 27 2015 report on Nordex
I personally do not think that Moody's got this right. Nordex's bank seems to agree with me or they wouldn't have increased their credit lines as well as dropping the interest rates charged to the company.
Nordex Explosives Ltd exhibits very high credit risk based on our Real-Time Risk Score. The two components of the Real-Time Risk Score, business risk and financial risk, asset volatility (business risk) and market leverage (financial risk), both worsened over the last year. Fundamentally, the company weakened in key indicators such as EBITDA margin, Leverage Ratio, EBITDA/Interest Expense and ROA based on its latest filings. Nordex Explosives Ltd underperformed the industry in metrics such as EBITDA margin, Leverage, EBITDA/Interest Expense and ROA. The increase in the company's leverage ratio (Debt/EBITDA) is a credit negative and could hinder the company's performance in the future. The Real-Time Risk Score trend is negative, meaning that Nordex Explosives Ltd's Real-Time Risk Score has worsened over the last year.