Moody's: Heidelberger Druck view stable

Moody's Investors Service said it changed the outlook on the ratings of Heidelberger Druckmaschinen AG to stable from negative.

Concurrently, Moody's affirmed Heidelberger Druck's B3 corporate family rating, B3-PD probability of default rating and the Caa1 rating on the company's €304 million of senior unsecured notes due April 2018.

The change in rating outlook to stable from negative is prompted by the progress Heidelberger Druck has made in returning to profitability in the second quarter of financial year 2013/14 (ending March 2014), supported by the execution of its Focus 2012 restructuring program.

The company reported profits of €13 million in the second quarter of 2013/14 and an operating loss of €9 million in the first half of 2013/14.

The change of outlook also reflects the company's generation of positive free cash flow of €21 million as adjusted by Moody's in the first half of 2013/14, which, however, Moody's said it expects to turn negative again in the second half as a result of restructuring cash outflows.

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