New York, November 14, 2016 -- Moody's Investors Service, ("Moody's") downgraded the ratings of Concordia International Corp. ("Concordia") including the Corporate Family Rating to Caa1 from B3 and the Probability of Default Rating to Caa1-PD from B3-PD. Moody's also downgraded the senior secured rating to B2 from B1, and the senior unsecured ratings to Caa3 from Caa2. At the same time, Moody's also affirmed the SGL-2 Speculative Grade Liquidity Rating. The rating outlook is negative.
"The downgrade follows continued weakness in the business, an uncertain competitive environment, and an unclear and challenging path towards deleveraging," said Jessica Gladstone, Moody's Senior Vice President. "Given the significant step-down in revenue and EBITDA in the third quarter of 2016 due to pressures in the North America business, Moody's now forecasts that adjusted debt/EBITDA will rise to between 8x -- 9x (including Moody's standard adjustments) in 2017.
Ratings Downgraded:
Corporate Family Rating, to Caa1 from B3
Probability of Default Rating, to Caa1-PD from B3-PD
Senior Secured Ratings, to B2 (LGD2) from B1 (LGD2)
Senior Unsecured Ratings, to Caa3 (LGD5) from Caa2 (LGD5)
Ratings affirmed:
Speculative Grade Liquidity Rating at SGL-2
The outlook on all ratings is negative