Mountain Province Diamonds Inc. -- Moody's downgrades Mountain Province Diamonds' ratings to Caa1; outlook negative
Moody's Investors Service, ("Moody's") downgraded Mountain Province Diamonds Inc.'s ("MPD") Corporate Family (CFR) rating to Caa1 from B3, Probability of Default Rating to Caa1-PD from B3-PD, second lien secured rating to Caa1 from B3 and Speculative Grade Liquidity Rating ("SGL") to SGL-4 from SGL-2. "The downgrade of MPD's rating is driven by the company's weak coverage metrics and liquidity and Moody's expectation of continued weakness in diamond prices", said Jamie Koutsoukis, Moody's Vice-President, Senior Analyst. More specifically, the weaknesses in MPD's credit profile, including its exposure to diamond prices, has left it vulnerable to shifts in market sentiment in these unprecedented operating conditions.