Ratings agency Moody's has downgraded Italian ferry operator Moby.

The corporate family rating has been downgraded to Ca from Caa3 due to a “negative outlook”.

Moby has “an unsustainable capital structure relative to its earnings potential,” Moody’s said.

It is faced with a high restructuring risk based on a depressed debt valuation and suffers from “weak liquidity” due to low profitability and increased capital spending, according to Moody's.