S&P changes ABB outlook to negative

S&P said it changed the outlook on ABB Ltd. to negative from stable and affirmed its A long-term issuer credit ratings and the A rating on the company’s senior unsecured notes.

“The negative outlook indicates that ABB’s weakened cash flow in 2019 and 2020 will be insufficient to allow the group to reduce leverage without using the disposal proceeds from the sale of its power grids business,” said S&P in a press release.

The company plans to distribute the net proceeds of $7.6 billion - $7.8 billion to shareholders.

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