Moody’s revises Wabtec to negative

Moody's Investors Service said it changed the outlook for Westinghouse Air Brake Technologies Corp.’s (Wabtec) ratings to negative from stable and affirmed all ratings, including its Baa3 senior unsecured notes rating.

Moody's said it changed the outlook in consideration of operating performance that has lagged expectations since the 2016 acquisition of Faiveley, along with concerns that profitability, cash flow and leverage will not sufficiently recover through 2018 and into 2019 as originally anticipated.

The agency believes that a significant improvement in freight railcar demand that would indicate strong growth forecasts are highly uncertain, while it is also concerned that the company cannot fully implement synergies from the Faiveley acquisition as originally anticipated.

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