The measure responds to the insufficiency of the available information to support the previously granted ratings.
Spain.- Codere remains mired in a difficult financial situation. The rating agency Moody’s Ratings has decided to withdraw the corporate ratings (CFR) 'Caa2' and the probability of default rating (PDR) 'Caa2-PD' from the Spanish-origin company. The measure, which also affects the 'Caa2' instrumental rating of the senior secured bonds due in 2028 issued by Codere Finance 2 (Luxembourg), is due to the lack of sufficient information to maintain these ratings.
According to the agency, the withdrawal of the ratings is due to the “insufficiency or inadequacy” of the available information to support the notes previously granted. In particular, Moody’s has pointed out that governance issues within Codere, stemming from the recent replacement of its audit and the delay in the presentation of the audited annual accounts for 2023, were key factors in making this decision.
“We believe we do not have sufficient or adequate information to support the maintenance of the rating(s),” Moody’s stated in its announcement. The agency added that the lack of transparency and compliance difficulties within the company negatively affected Codere's ability to meet its financial commitments in a clear and predictable manner.
See also: Nasdaq warning: Codere Online could be delisted if it fails to present all the required documentation
Before this withdrawal, the outlook for the ratings was stable for all entities involved, but the current situation of the company seems to have raised additional concerns about its financial strength and management capacity.
