S&P revises Alstom outlook to negative

Standard & Poor's said it revised its outlook on Alstom to negative from stable.

At the same time, the agency affirmed its long-term corporate credit rating on Alstom at BBB-.

In addition, S&P lowered the Greater China national scale rating on Alstom to cnBBB+ from cnA-.

The outlook revision comes in anticipation of Alstom's €3.5 billion to €4 billion share buyback and €1 billion to €2 billion bond buyback around the close of the transaction with General Electric (GE), expected to be completed by mid-2015.

Following the sale of around two-thirds of its total business to GE General Electric S&P believes that the combination of the proposed capital structure and Alstom's significantly diminished scale, scope and diversity could lead the agency to lower the rating on the company by one notch to BB+.

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