TCS: Moody’s lowers its rating again – 02/20/2023 at 10:07


(CercleFinance.com) – Moody’s announced on Friday evening that it had further lowered the credit rating assigned to Technicolor Creative Studios (TCS), pushing it further into ultra-speculative territory.

In a statement, the financial rating agency said it had reduced the group’s rating to ‘Caa3’ against ‘Caa1’ so far, with a still ‘negative’ outlook.

Moody’s justifies its decision by the discussions initiated by the company with its main creditors in order to ‘readjust’ its debt and its capital structure, and to meet its liquidity needs.

From the agency’s point of view, the eventuality of a debt-to-equity conversion operation would amount to a ‘default’ because of the losses that the creditors could bear.

Last November, Moody’s had already downgraded its rating on TCS.

At Moody’s, the ‘Caa3’ rating, located in the speculative category, is supposed to reflect ‘very high’ risks, only three levels above default.

Despite these announcements, the TCS share rose by 1.6% on Monday morning on the Paris Stock Exchange. However, it shows a drop of more than 33% over the past month.



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