Moody’s changes Alstom view to stable

Moody’s Investors Service said it changed the outlook for Alstom to stable from positive and affirmed the company’s Baa2 long-term issuer rating and Baa2 senior unsecured rating.

The change in Alstom’s outlook to stable from positive was prompted by Alstom’s announcement it signed a memorandum of understanding with Bombardier Inc. and Caisse de dépôt et placement du Quebec for the acquisition of Bombardier Inc.’s transportation business for an equity value of €5.8bn to €6.2bn.

Considering the existing uncertainties, mostly regarding the required clearances from regulatory authorities being conditions to closing, which is expected in the first half of 2021, but also regarding Alstom’s ability to turn-around Bombardier’s currently underperforming business, Moody’s said it does not expect any more to be likely to consider an upgrade of Alstom’s Baa2 ratings within the next 12-18 months.

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