Moody’s changes Valeo view to positive

Moody's Investors Service said it affirmed the Baa3 long-term issuer rating for Valeo SA.

At the same time, the agency affirmed the Baa3 rating assigned to the company's €1.12 billion senior notes due in 2017, 2018 and 2024, the ratings on the company's €2 billion euro medium-term note program (provisional Baa3 for unsubordinated notes and provisional Ba1 for subordinated notes) and the Prime-3 commercial paper rating of Valeo.

The outlook was changed to positive from stable.

Moody’s said the action was triggered by Valeo's ability to repeatedly materially outperform the market, reflected by 10.3% organic original equipment manufacturer sales growth in the first half of 2014, compared with 3.6% growth in global automotive production.

Valeo has maintained a healthy financial profile, as reflected by (a) a net debt/EBITDA ratio of 1.5x per end of 2013; (b) strong growth recorded over the past four years; (c) stable operating performance with an adjusted EBITA margin of 5.5% in fiscal year 2013; (d) average debt maturity of 5˝ years; and (e) continuously improving geographic diversification, coupled with a high innovation rate that has supported 25% growth in order intake in the first half of 2014, the agency said.

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