Moody's may lower Valeo

Moody's Investors Service said it placed under review for possible downgrade the Baa3 long-term and Prime-3 short-term ratings of Valeo SA.

Falk Frey, senior vice president and lead analyst at Moody's for Valeo, commented: "The review for downgrade was triggered by the company's revised expectations for its operating margin in FY 2008 and - more important - the bleak outlook for next year. Moody's will review the impact of the company's actions on the financial flexibility and credit metrics for 2008 and in particular for 2009 and beyond."

The agency said that on Dec. 17, Valeo announced a revised operating margin objective for 2008 due to an accelerated decline in automobile production in the fourth quarter 2008.

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