(CercleFinance.com) – Moody’s Investors Service announced on Friday evening that it had downgraded its probability of default (PDR) rating on Technicolor Creative Studios following the group’s announcement of a recapitalization project.
In a statement, the rating agency said it had lowered its rating on the image technology specialist to ‘Ca’, against ‘Caa3’ previously, two notches above an effective payment default.
According to Moody’s, this downgrade reflects ‘the proposed debt financing restructuring which, if carried out as is, would be viewed by Moody’s as a forced exchange that would involve losses to existing creditors, the equivalent of a default according to Moody’s’.
The financial rating agency nevertheless maintains its corporate family rating (CFR) at ‘Caa3’ on the group.
After losing 10.5% on Friday following the announcement of disappointing results and its recapitalization project, TCS shares rebounded by barely 0.2% on Monday morning on the Paris Stock Exchange.
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