Moody’s upgrades Alstom, debt to Baa2

Moody's Investors Service said it upgraded the long-term issuer rating and senior unsecured rating assigned to Alstom to Baa2 from Baa3.

Concurrently, the agency changed the outlook on the rating to stable from positive, upgraded the rating of the senior unsecured euro medium-term note program to provisional Baa2 from provisional Baa3 and upgraded the senior unsecured commercial paper rating to P-2 from P-3.

"We have changed Alstom's rating to Baa2 from Baa3 because the company has concluded successfully the transaction with General Electric Co., used a sizeable part of the disposal proceeds to reduce its debt by €2.9 billion in addition to repayment of bridge facilities related to the GE transaction and is committed to further redeem its upcoming debt maturities with the remaining liquidity when coming due," Martin Kohlhase, Moody's vice president, senior credit officer and lead analyst for Alstom, said in a news release.

"Moreover, our view is that the company will generate positive free cash flows over the next 12-18 months, and improve its operating results."

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