Moody's affirms Alcatel-Lucent

Moody's Investors Service said it affirmed Alcatel-Lucent's B2 corporate family and probability of default ratings.

Concurrently, Moody's affirmed the senior debt ratings at B3, with a loss given default assessment of 5 (LGD5, 75%), and the ratings on two convertible bonds issued by Lucent Technologies, Inc., before its 2006 merger with Alcatel, and guaranteed by Alcatel-Lucent on a subordinated basis at Caa1 (LGD5, 77%).

The outlook was changed to negative from stable.

"Today's change in the outlook for Alcatel-Lucent's debt ratings was driven by our expectation that, in 2012, the company will not be able to cut its cash consumption materially below the 2011 level of €620 million as adjusted," Moody's senior vice president and lead analyst for Alcatel-Lucent Wolfgang Draack said in a news release.

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