Moody's may cut Thomson

Moody's Investors Service said it placed the Baa3 long-term issuer rating for Thomson SA and the Ba2 rating for its perpetual junior subordinated bonds under review for possible downgrade.

Its stable outlook also is on downgrade review.

In 2007, Thomson failed to meet Moody's financial criteria for a Baa3 rating, the agency said. Whereas the company was able to reduce net debt by about €200 million, the generation of retained cash flow fell materially behind expectations, Moody's said.

The review process will consider management's strategy for stimulating growth in the business, returning the broadcast and networks operations to profitability and strengthening margins in other operations through further cost reductions, the agency said.

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