Fitch downgrades GEA Group to BBB-

Fitch Ratings said it downgraded GEA Group AG’s long-term issuer default rating and senior unsecured rating to BBB- from BBB.

“The downgrade is driven by prolonged operational issues and restructuring efforts, which resulted in EBIT and funds from operations (FFO) margins decreasing to 6% and we expect it to remain around this level in the medium term, which is weaker than BBB diversified industrial peers, and is not considered in line with our diversified industrials and capital goods Navigator midpoint of 8% for both metrics,” said Fitch in a press release.

The outlook is stable

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