Moody's cuts EnerSys outlook to stable

Moody's Investors Service said it changed the outlook for EnerSys to stable from positive and affirmed the ratings of the company, including the Ba3 corporate family, Ba3 probability of default, Ba1 senior secured and B2 senior unsecured convertible notes ratings.

The outlook change reflects Moody's belief that the significant reduction in demand for EnerSys' products and services, in both the reserve power and motive power business segments, is likely to lead to a material decrease in unit sales volume and pressure its operating results through the near term, the agency said.

Consequently, in Moody's opinion, EnerSys' fundamentals are no longer expected to support a ratings upgrade through the next year, the agency noted.

Moody's said it also acknowledges the company's improvement in operating performance and key credit metrics in the last fiscal year, but believes that over the medium term, it will remain challenging for EnerSys to maintain metrics similar to those levels.

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