Moody's changes Valeo's view to negative

Moody's Investors Service said it affirmed the Baa3 long term issuer and Prime-3 (P-3) commercial paper ratings of Valeo SE and changed the outlook to negative from stable.

“The change in Valeo's rating outlook to negative from stable reflects the heightened risk that Valeo might not be able to achieve credit metrics commensurate for its Baa3 rating by 2023, also given the dilutive effects from the full consolidation of its previous joint venture Valeo eSiemens in addition to an increasingly challenging outlook for the automotive industry for 2023 and continued challenges from inflated raw material and energy costs which have not yet been fully passed on to the OEMs,” Moody’s said in a news release.

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