Moody's: Technicolor stable

Moody's Investors Service said it revised the outlook on Technicolor's rating to stable from negative while affirming the corporate family rating at B3.

Moody's said the change in outlook reflects its expectation that the group will generate positive and meaningful free cash flow over the next two to three years, which Technicolor will use to reduce gross debt whilst maintaining adequate headroom under the covenants of its debt facilities.

The change in outlook also factors in a recent meaningful reduction in the company's debt during the third quarter of 2012 through the proceeds from an equity injection and the disposal of its broadcast business, the agency said.

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