Moody’s downgrades Valeo

Moody's Investors Service said it downgraded the long-term issuer rating and senior unsecured ratings of Valeo SA to Baa3 from Baa2.

The outlook was changed to stable from negative.

“The downgrade of Valeo's ratings is driven by the continued deterioration of the global automotive industry environment, and its negative implications on Valeo's credit metrics,” Matthias Heck, Moody's vice president, senior credit officer and lead analyst for Valeo, said in a news release.

“The stable outlook reflects the expectation that Valeo will be able to maintain EBITA margins (Moody's adjusted) above 4.5%, and de-lever to below 3.5x debt/EBITDA and 2.5x net debt/EBITDA (Moody's adjusted) within the next 12-18 months; levels which are required for a Baa3 rating.”

© 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.