Moody's drops Duerr

Moody's Investors Service said it has downgraded Duerr AG's corporate family rating to B2 from B1.

The agency added that the rating for Duerr's subordinated bond has been downgraded to Caa1 from B3.

The outlook remains negative.

Rainer Neidnig, lead analyst at Moody's for Duerr, said: "Although we believe that Duerr's business profile and market position remain solid, the agency said it now expects a more severe and longer lasting impact from the recessionary environment than previously anticipated.

"As a result, the agency said it believe that Duerr will not be in a position to maintain financial ratios required for the B1 rating category for an extended period," Neidnig continued.

"Although order intake recovered notably in Q2 2009, uncertainty around the severity of a cyclical decline in earnings remains which is reflected in the negative outlook. However, should the recovery in order intake prove to be sustainable, the outlook could be stabilized within the next few quarters."

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