Towergate and Towergate Mardon

[Sandyshore]

Check out.
www.Insurance times.co.uk/news
www.insuranceage.co.uk
Rather a concern I see in the past Mardon have posted on the forum .
Any comment .

 

[sailorman]

[h=1]Moody’s downgrades Towergate[/h] Author: Emmanuel Kenning
Source: Insurance Age | 21 Nov 2014
Categories: Broker
Tags: Towergate | Ratings

Ratings agency warns of possible further downgrades.
Moody's Investors Service has downgraded the probability of default rating of Towergate by one notch to Caa1.
The senior secured and senior unsecured instruments issued by Towergate Finance plc have also been downgraded by one notch to B2 and Caa3 respectively.
Moody's added that all ratings have been placed on review for further downgrade.
The move came just one day after Fitch also downgraded Towergate and put it on a negative watch.
Both specialist ratings agencies highlighted the decline in profitability of the firm and cash flow issues which Towergate reported in its third-quarter results as it put itself up for sale.
Increasing weakness
Moody's report on Towergate stated: "Moody's notes that the increasing weakness in the group's operational cash flow and liquidity, together with the group's need to renegotiate its financial covenant, indicate increased downside risk for Towergate's creditors.
"We note that the group is seeking to address its liquidity issues through management actions including the disposal of small non-core businesses, but there is uncertainty in this regard with respect to timing and quantum."
It continued: "Furthermore, we currently view Towergate's longer-term liquidity position as challenged given the group's current financial performance, the weak trading environment and on-going restructuring cost burden."