Moody’s revises ASML to positive

Moody's Investors Service said it changed the outlook on the Baa1 senior unsecured rating of ASML Holding NV to positive from stable and affirmed its Baa1 senior unsecured rating.

Moody’s said the outlook change reflects ASML’s progress in executing its product roadmap, including growing shipment of the new EUV lithography.

The company has been developing over the past years the extreme ultraviolet (EUV) technology at high and front-loaded investments and R&D expenses, which are now starting to pay off as evidenced by reaching gross margin break-even levels for EUV in the fourth quarter of 2017, the agency explained.

Moody’s added that the successful commercial adoption of EUV improves the structural prospects of the company by solidifying its market position and drive group gross margin to target levels of over 50% by 2020.

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