Moody’s revises Alstom view to positive

Moody's Investors Service said it affirmed the Baa3 senior unsecured rating of Alstom SA and revised the outlook to positive from negative.

The positive outlook follows the company's June 22 announcement that it accepted General Electric Co.’s (Aa3 stable) amended offer to acquire Alstom Energy, by forming joint ventures in selected energy segments and to strengthen Alstom Transport for an equity value of €12.35 billion. Alstom’s board of directors unanimously recommended GE's amended offer, which, pending regulatory review, is expected to close during the course of 2015.

Moody’s said the outlook change was prompted by its expectation of a high likelihood that the transaction will go through, which will have positive implications on Alstom's business profile. It reflects Alstom's prospects for improved profitability, free cash flow generation, good liquidity and expectation of lower leverage over the intermediate-term.

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