...- PHM Netherlands Midco B.V.'s (d/b/a Loparex) operating performance is weaker than previously expected on continued demand softness and customer destocking. We expect these trends to continue with further weakness in volumes and free operating cash flow (FOCF) deficits in the next 12 months. - During the first half of fiscal 2023, Loparex generated a FOCF deficit mainly because of slow earnings and high borrowing costs, further weakening its liquidity position. - We lowered our issuer credit rating on the company to '###+' from 'B-'. - We also lowered our issue-level rating on its senior secured credit facilities to '###+' from 'B-' and on the unsecured notes to '###-' from '###'. The recovery ratings remain '3' and '6', respectively. - The negative outlook reflects our expectations for prolonged weakness in operating performance and elevated interest rates, resulting in persistent free cash flow deficits and increased pressure on liquidity over the next 12 months....
