Moody's: Alstom view to negative

Moody's Investors Service said it changed the outlook on the Baa3 long-term issuer rating and senior unsecured ratings assigned to Alstom to negative from stable.

Concurrently, the agency affirmed the Baa3 ratings, the provisional Baa3 rating of the euro medium-term note program and the short-term P-3 rating.

"We have changed the outlook on Alstom's Baa3 rating to negative from stable because the company may find it challenging to deleverage as a consequence of its weaker-than-expected advance and progress payments during the current fiscal year," Roberto Pozzi, Moody's vice president, senior analyst and lead analyst on Alstom, said in a news release.

"Moreover, our view is that the company will generate significantly weaker free cash flows over the next 12-18 months, compared to our initial expectations for the current rating."

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