Fitch revises ams-OSRAM view to positive

Fitch Ratings said it revised the outlook on ams-OSRAM AG's to positive from stable and affirmed the issuer and senior unsecured ratings at BB-. Fitch has also assigned the company's senior unsecured rating an RR4 recovery rating.

“The revision of the outlook to positive reflects the continual improvement in the company's capital structure over 2021 and 2022, resulting from debt repayment and increased underlying earnings. Fitch believes the company will continue to de-lever in the short to medium term, improving its headroom under the BB- rating, as deployment of the expected strong cash generation is likely to be prioritized towards debt repayment and reinvestment in the business ahead of shareholder-friendly actions,” the agency said in a press release.

Fitch said it sees the issuer reducing leverage to around 3x by the end of 2023 and then gradually lowering it further towards 2.5x.

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