Altice France’s Credit Rating Cut Into Danger Zone for CLOs
- Moody’s Ratings downgraded the company to Caa2 from B3
- Analysts cited the company’s unsustainable capital structure
The Altice campus office building in Paris, France.
Photographer: Benjamin Girette/BloombergThis article is for subscribers only.
Moody’s Ratings cut Altice France Holding SA’s credit rating to one of its lowest tiers, a move that threatens to wreak havoc on collateralized loan obligations holding the company’s debt.
The two-step downgrade of the parent company to Caa2 from B3 follows Altice France’s recent earnings announcement, where the company said it was expecting revenue decline and would need creditors to participate in discounted transactions to help reduce leverage, Moody’s analysts wrote in a note Wednesday.