Moody’s shifts Gestamp view to negative

Moody’s Investors Service said it changed the outlook on Gestamp Automocion, SA and Gestamp Funding Luxembourg SA to negative from stable.

“The outlook change reflects increased challenges for Gestamp to sustain profitability and improve leverage to levels required for the Ba2 rating. Over the more prosperous previous years for the automotive industry, Gestamp’s high amounts of growth investments have increased leverage, which is more difficult to reduce within the current challenging sector environment,” said Matthias Heck, a Moody’s vice president, senior credit officer and lead analyst for Gestamp, in a press release.

Moody’s affirmed Gestamp’s corporate family rating at Ba2, the probability of default rating at Ba2-PD and the Ba3 instrument ratings of the backed senior secured notes issued by Gestamp and Gestamp Funding.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.