Cerba - comment

It seems like the rating agencies are only catching up. Moody’s downgraded the corporate family rating to Caa1 from B3, the ratings on the senior secured term loans and senior secured notes to Caa1 from B2 and the ratings on the senior notes to Caa3 from Caa2. Interestingly they have also changed the outlook from negative to stable despite the downgrade. Despite the negative market reaction to the senior notes, our views on the credit have not changed and we remain constructive on the turnaround story that Cerba represents in the medium term.