Technicolor: Moody's downgrades credit rating
(CercleFinance.com) - The Technicolor stock is down 5.
2% today, the worst performer in the SBF120, penalised by Moody's downgrading its credit rating for the group from "Ba3" to "B1," again coupled with a "negative" outlook.
Moody's justifies its decision by the publication of weaker-than-expected 2017 results, and its vision that the group will not be able to restore its credit parameters to levels that would merit a "Ba3" rating over the next two to three years.
It also points to Technicolor's recent decision to divest its patent licensing business, a decision that "will significantly impact profitability and result in a lower generation of free cash flow" than previously anticipated.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
2% today, the worst performer in the SBF120, penalised by Moody's downgrading its credit rating for the group from "Ba3" to "B1," again coupled with a "negative" outlook.
Moody's justifies its decision by the publication of weaker-than-expected 2017 results, and its vision that the group will not be able to restore its credit parameters to levels that would merit a "Ba3" rating over the next two to three years.
It also points to Technicolor's recent decision to divest its patent licensing business, a decision that "will significantly impact profitability and result in a lower generation of free cash flow" than previously anticipated.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.