Moody's downgrades Alstom

Moody's Investors Service said it downgraded Alstom's issuer and senior unsecured ratings to Baa2 from Baa1.

Concurrently, Moody's has changed the outlook on the ratings to negative from under review. In addition, the rating agency said it maintained Alstom's short-term rating at Prime-2.

"The downgrade reflects our view that Alstom is exposed to persistent and material negative trends in working capital levels, both reducing the group's financial flexibility and resulting in higher leverage than anticipated for the Baa1 rating," Moody's vice president, senior analyst and lead analyst for Alstom, Alex Verbov, said in a press release.

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