Moody's Wolters Kluwer outlook negative

Moody's Investors Service said it confirmed the Baa1 long-term senior debt ratings of Wolters Kluwer NV including the Baa2 perpetual subordinated eurobonds and the Baa1 6 1/8% eurobonds due 2005, 5½% eurobonds due 2006, 1% convertible eurobonds due 2006 and 5 1/8% eurobonds due 2014.

The outlook was revised to negative.

The confirmation is based on Moody's expectation that Wolters Kluwer is likely to make further progress in the execution of its three-year strategic plan as it enters the final year of the plan period, that overall organic growth momentum can be maintained and that a turnaround to organic growth in Wolters Kluwer's European legal, tax and regulatory business in 2006 is feasible.

The outlook downgrade reflects the remaining challenges for Wolters Kluwer to achieve target levels of organic growth (4%) and operating margins (19% to 20%) by 2007, some risk that the company could initiate more acquisitions than currently expected and a possibility that the company might take further restructuring steps over the next twelve months, Moody's said.

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