Cerba - comment

The ratings downgrade at Cerba doesn’t change the situation. The company remains highly leveraged, with a capital structure that is no longer sustainable. Given the constrained liquidity position, a restructuring appears inevitable.

Moody’s has downgraded Cerba to Caa2, with a negative outlook. The recent BioGroup conference call offered little reassurance to bondholders regarding the evolving regulatory environment in France, as BioGroup’s management declined to comment on the matter.