Moody’s: thyssenkrupp to developing

Moody's Investors Service said it changed the outlook on the Ba2 corporate family rating and Ba2-PD probability of default rating of thyssenkrupp AG to developing from stable.

At the same time, the agency affirmed these ratings.

Concurrently, the agency affirmed the senior unsecured debt at Ba2, including the provisional Ba2 program rating. It also affirmed the short-term ratings of tk at NP/provisional NP.

The outlook on all ratings was changed to developing.

"Our decision to revise the outlook on thyssenkrupp's ratings to developing reflects the uncertainty with respect to the potential credit impact, be it weighing more positively or more negatively, that its recently announced decision to form a joint venture with Tata Steel will have on the company," Moody’s vice president, senior credit officer Gianmarco Migliavacca said in a news release.

"With the deal being at a very early stage, we will wait to see what the financing, liquidity and governance arrangements, as well as the dividend policy, of the new entity are and how these may affect thyssenkrupp's credit profile."

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