Moody’s changes Valeo view to negative

Moody’s Investors Service said it confirmed the Baa3 long-term issuer rating and senior unsecured ratings and changed the outlook to negative from under review for Valeo SA.

This action concludes a review for possible downgrade started on March 26, the agency said.

“The confirmation of Valeo’s ratings reflects the expectation that the company will swiftly recover from the negative impact of the global coronavirus outbreak on credit metrics in 2020,” said Matthias Heck, a Moody’s vice president, senior credit officer and lead analyst for Valeo, in a press release.

“Valeo’s margins and leverage will, however, still be weak for a Baa3 in 2021 and the negative outlook indicates the risk of a downgrade if the global auto market does not recover as expected or Valeo fails to achieve its expected outperformance of at least 500 basis points,” added Heck.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.