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Horizon Global Corporation -- Moody's downgrades Horizon's CFR to Caa3 from Caa2, outlook remains negative

Moody's Investors Service ("Moody's") downgraded Horizon Global Corporation's ("Horizon") Corporate Family Rating (CFR) to Caa3 from Caa2, its Probability of Default Rating to Caa3-PD from Caa2-PD and the senior secured first lien term loan rating to Caa2 from Caa1. The downgrade reflects that very high leverage and negative free cash flow create an unsustainable capital structure despite anticipated improvements in earnings in 2019. "Horizon's unsustainable capital structure along with continued weak liquidity are substantial obstacles to overcome as the company executes its turnaround strategy," said Inna Bodeck, Moody's lead analyst for the company.