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Moody’s lifts Gestamp to Ba2, notes to Ba3
Moody's Investors Service said it upgraded the corporate family rating of Gestamp Automoción, SA to Ba2 from Ba3 and the probability of default rating to Ba2-PD from Ba3-PD.
At the same time, the agency upgraded the rating of the €500 million and $350 million senior secured notes due in May 2020 issued by Gestamp Funding Luxembourg SA to Ba3 from B1.
The outlook remains stable.
Moody’s said the action was prompted by the steady improvement in key credit metrics Gestamp showed since rating assignment in 2013, positive sector fundamentals and the expectation that this will translate into a further improvement in Gestamp's key credit metrics during 2016, so that the rating will be solidly positioned in the Ba2 rating category.
"In consideration of the strong competitive position of the company, reflective of its technological strength and continuous focus on R&D and innovation, and which supported improved operating profitability and lower leverage, Moody's today upgraded Gestamp by one notch to Ba2," Oliver Giani, Moody's lead analyst for the European automotive supplier industry, said in a news release.
"The decision was supported by Moody's positive outlook on the European automotive supplier industry, which is expected to organically grow revenues and EBITA by more than 5% during 2016."
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