Moody's boosts Gildemeister

Moody's Investors Service said it upgraded the corporate family rating of Gildemeister AG to Ba2 from Ba3.

The rating for the senior subordinated notes was upgraded from B2 to B1 (LGD 5, 87%), the agency said.

The outlook is stable.

"The upgrade reflects Gildemeister's improvements in operating performance and cash generation in line with the requirements for further positive rating pressure as outlined in Moody's latest Press Release published in March 2007, notably, RCF to Net Debt increased clearly above 20% and EBITA-Margin improved towards 8% in the last 12 months ended September 2007," said Christian Hendker, lead analyst at Moody's for Gildemeister.

"In addition, the upgrade reflects the increasing likelihood that Gildemeister's business model will show more resilience through the cycle, as a consequence of a high innovation rate, cost benefits from supply chain management and an improved segmental diversification through the expansion of the company's profitable and more stable service segment."

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