Moody's: Hella outlook positive

Moody's Investors Service said it affirmed Hella KGaA Hueck&Co.'s corporate family and probability-of-default ratings at Ba1, and revised the outlook to positive.

The change in outlook acknowledges the significant recovery in Hella's operating performance during fiscal year 2009/2010 compared with the previous year supported by increasing automotive productions volumes as well as the group's reshaped cost structure, according to the agency.

This lead to credit metrics with a debt-to-EBITDA ratio of 2.7x, Moody's noted.

Hella's Ba1 rating benefits from the group's leading market positions in lighting technology, in the European independent aftermarket as well as in original equipment electronics, the agency said.

The rating remains constrained by the company's continuous need to adjust its cost base, its exposure to the volatility of raw material prices as well as material research and development needs in order to maintain technological leadership, Moody's said.

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