Moody's upgrades Wienerberger

Moody's Investors Service said it upgraded the corporate family rating of Wienerberger AG to Ba1 from Ba2.

The agency also said it affirmed the issuer's junior subordinate rating at Ba3, probability of default rating at Ba1-PD and senior unsecured ratings at Ba1.

The outlook also was changed to stable from positive.

The upgrades reflect the improvement in the company's credit metrics over the last two years and an expectation that the company's credit metrics will remain consistent with a Ba1 rating in the foreseeable future supported by organic improvements in earnings and operating cash flows, conservative financial policies and consistent positive free cash flow generation, Moody's said.

Wienerberger's credit metrics are currently in line with an expectation for a Ba1 credit rating with a leverage ratio as measured by an adjusted debt-to-EBITDA of about 3.3x, the agency said.

The upgrades also considers a view on the macroeconomic and credit cycle at a point where issuers benefit from favorable demand and operating leverage, Moody's said.

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