Moody's clips ams-Osram ratings

Moody's Investors Service said it downgraded ams-Osram AG’s €850 million and the $450 million guaranteed senior unsecured bonds to B2 from B1. The agency also lowered the corporate family rating and probability of default rating of ams-Osram AG to B2 from B1 and B2-PD from B1-PD respectively.

"The rating downgrade to B2 reflects the weak operating performance during 2023 with slower than expected achievement in margin improvement and related high leverage for a prolonged period following the acquisition of Osram," said Dirk Goedde, a Moody's vice president and lead analyst for ams-Osram, in a press release.

"Despite the completion of the sizeable divestment program and a major cost synergy program, the company's profitability levels and credit metrics remain outside of the requirements for a B1 rating inter alia from ongoing inventory correction. Furthermore, the company invests in new production capacity that leads to highly negative free cash flow generation while facing major debt maturities in 2025 that need to be addressed," added Goedde.

The outlook remains stable.

© 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.