By Luca Casiraghi
(Bloomberg) — Co.’s EU250m bonds due December 2024 dropped 12 cents after S&P cut its credit rating one notch to BB- on Monday.

S&P also placed the notes on negative watch on Monday, meaning the notes could be downgraded further

Rating action was taken following co.’s lower-than-expected 2Q results and announcement of material fine payable in the next 12 months

Other negative factors flagged by S&P:
** Net debt-to-Ebitda ratio likely to exceed 5x versus previous estimate of 2.2x at end of 2019
** Liquidity weaker than expected
** Available credit lines are uncommitted

Paper co. could be forced to ‘negotiate new credit lines in the next six months to maintain sufficient liquidity and avoid default,’ according to Joan Sehim, analyst at SpreadResearch

NOTE: Pro-Gest Bonds Drop on Earnings Decline, Risk of Covenant Breach