Moody's ups Hella KGaA

Moody's Investors Service said it upgraded Hella KGaA Hueck & Co. to Baa3 from Ba1 and converted the corporate family rating into a long-term issuer rating in line with Moody's policy for issuers that have moved from speculative grade to investment grade.

Moody's said it also upgraded the rating on Hella's €300 million of senior notes due 2014 to Baa3 from Ba1 and Hella's short-term issuer rating to Prime-3 from Not-Prime.

The outlook is positive.

The upgrade reflects the rapid recovery of Hella's profitability and leverage ratios following the severe downturn in the automotive industry in 2009, Moody's said.

The ratings continue to benefit from the group's market-leading positions in lighting technology in the European independent aftermarket as well as in original equipment electronics, Moody's said.

The ratings also consider that Hella remains exposed to the cyclicality of automotive production volumes and to potentially volatile costs for raw materials and components, the agency said.

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