Gopher Resources, LLC, a battery recycling plant located in Tampa Bay, Fla., received a downgrade amid continued lead-poisoning allegations.
Moody’s on June 22 downgraded Gopher's family corporate rating to Caa1 from B2. The credit issuer mentioned in its report that social risk was a driver in its rating action.
Moody’s projects that costs from lawsuits and potential plant remediation will limit Gopher's liquidity, despite improving demand and high financial leverage.
Gopher's Lead Poisoning Allegations
In March, the Tampa Bay Times reported that workers at Gopher's Tampa plant have been heavily exposed to lead poisoning for decades.
Its investigation of 18 months found that eight out of 10 workers from 2014-2018 had enough lead in their blood to put them at health risks.&...