Ratings agency Moody’s has upgraded Technicolor’s corporate family rating (CFR) from Caa3 to Caa2, and said its outlook is now stable rather than negative.
The change in rating comes after Technicolor announced in September that it had completed its debt restructuring.
Moody’s said the change reflects Technicolor’s €356 million debt reduction, improvement in the company’s liquidity thanks to the new money cash injection of €420 million; and Moody’s expectation that Technicolor’s EBITDA will gradually recover during 2021 after the significant decline in H1 2020 caused by the coronavirus pandemic.
In addition, the CFR continues to reflect Technicolor’s scale and its leading market shares in the Connected Home and Entertainment Services businesses as well as its complementary geographical footprint and customer portfolio, said Moody’s.
The ratings agency first downgraded Technicolor in October 2019, and then again earlier this year.