S&P lowers Electrolux

Standard& Poor’s said it lowered the long-term corporate credit rating on AB Electrolux to BBB from BBB+.

The agency also said it lowered the Nordic scale rating on the company to K-2 from K-1.

S&P also said it lowered the ratings on the company’s senior unsecured debt to BBB from BBB+ and affirmed the short-term corporate credit rating at A-2.

The outlook is stable.

The downgrades reflect Electrolux’s likely increase in debt leverage following its agreement to acquire GE Appliances for $3.3 billion with debt levels set to rise from SEK 12 billion to more than SEK 30 billion in 2015, S&P said.

The downgrades also consider that Electrolux’s investment policy is becoming more assertive, as indicated by the size of the GE Appliances acquisition, in the face of tough competition in mature markets like North America, the agency said.

© 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.