Moody's: Wienerberger outlook negative

Moody's Investors Service said it changed the outlook on Wienerberger AG's Ba1 corporate family rating, Ba1 long-term senior unsecured rating and Ba3 hybrid rating to negative from stable.

The rating action was prompted by the publication of very weak results in the first quarter, the agency said. Moody's believes that, based on these results, it might be more challenging than previously anticipated for Wienerberger in the rest of the year to catch up from these weak results in order to achieve cash flows that would be sufficient to maintain its current rating.

The current rating continues to incorporate the expectation that overall volumes of Wienerberger's products will remain stable in 2010 as compared to 2009, average prices will remain flat to slightly negative, overall cash cost have been reduced to help improving the 2010 operating EBITDA to at least €200 million and free cash flow will remain positive in 2010, the agency said.

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