Moody’s assigns Alstom bonds Baa2

Moody’s Investors Service said it gave a Baa2 rating to Alstom SA’s planned €750 million of eight-year senior unsecured notes. There is no change to the company's Baa2 long-term issuer and its Baa2 senior unsecured ratings.

Moody’s expects Alstom to use the proceeds for general corporate purposes, including the financing in part of the acquisition of Bombardier Transportation, which is expected to close on Jan. 29.

“While the acquisition of BT and proposed bonds will temporarily weaken Alstom’s pro forma financial metrics, Moody’s believes that Alstom has the ability to successfully integrate and turnaround BT’s business that will reduce leverage over the next two years to levels that are more commensurate with the Baa2 rating category,” the agency said in a press release.

The outlook is stable.

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