Moody's may lower Duerr

Moody's Investors Service said it placed all Duerr AG ratings on review for possible downgrade.

Moody's said the review was prompted by (a) further weakening in Duerr's operating margins as compared to first-half 2004, resulting from challenges in one of Duerr's core activities, the Paint and Assembly Systems division; (2) below expected cash flow generation; and (3) further deterioration in the company's liquidity profile at a time when the company has announced that it is embarking upon further restructuring initiatives to improve profitability.

The following ratings were affected: the B1 rating on the €360 million five-year senior secured revolving credit and guarantee facilities; the B3 rating on the €200 million 9.75% senior subordinated notes due 2011, issued by Duerr AG; and the B1 corporate family rating on Duerr AG.

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