Moody's ups Gerresheimer

Moody's Investors Service said it upgraded Gerresheimer AG's corporate family rating to Ba1 from Ba2 and the senior subordinated notes issued by Gerresheimer Holdings GmbH, a subsidiary of Gerresheimer, to Ba2 (LGD 6, 90%) from B1 (LGD 6, 91%).

The outlook is stable.

The upgrade reflects Gerresheimer's further progress in improving its credit metrics in 2010, as evidenced by strengthened leverage ratios, including a debt-to-EBITDA ratio of 2.8x, Moody's said.

Given Gerresheimer's resilient operating and financial performance during the recession, Moody's said it considers leverage ratios adequately positioned in the Ba1 category.

The rating incorporates Gerresheimer's balanced financial policy, as evidenced by the group's decision to temporarily suspend dividend payments during the financial crisis and to abstain from mergers and acquisitions activity in recent years, the agency said.

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