S&P takes Duerr off watch

Standard & Poor's said it affirmed its B long-term corporate credit and CCC+ subordinated debt ratings on Duerr AG and removed them from CreditWatch, where the ratings had been placed with negative implications on Aug. 11.

The outlook is stable.

The CreditWatch resolution follows S&P's reassessment of Duerr's credit quality based on the group's new business plan, recent disposals and confirmed shareholder support.

S&P said it views favorably the financial measures adopted by Duerr in the past two months. The existing syndicated bank facilities (a €160 million guarantee line and a €120 million credit line) maturing within four years have been confirmed and the covenants amended. The MTP division has been sold, with about €200 million in proceeds expected to be cashed in before year-end. Another €20 million is expected from an equity increase by year-end as well.

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