Moody’s upgrades Heidelberger, notes

Moody's Investors Service said it upgraded Heidelberger Druckmaschinen AG’s corporate family rating to B2 from B3, probability of default rating to B2-PD from B3-PD and the rating on its €205 million senior unsecured notes due 2022 to B3 (LGD 4) from Caa1 (LGD 4).

The outlook on all ratings was changed to stable from positive.

"The upgrade to B2 acknowledges Heidelberg's sound operating performance and strengthening credit metrics during fiscal year ended March 2017 and our expectation of a gradual further improving business and financial profile of the group over the next two to three years," Goetz Grossmann, Moody's lead analyst for Heidelberg, said in a news release.

"Growth in profits combined with a noticeable reduction in pension obligations supported Heidelberg's Moody's-adjusted leverage to decline to 6.1x debt/EBITDA as of March-end 2017, while its improved 3.7% Moody's-adjusted EBITA margin now also meets our guidance for a B2 rating of at least 3.5%."

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