Moody’s changes GKN to negative

Moody's Investors Service said it changed the outlook on the ratings of GKN Holdings plc to negative from stable and affirmed the Baa3 senior unsecured debt ratings.

"The outlook change reflects the accelerated and more specific plan to separate GKN into the aerospace and driveline businesses, which would likely result in a weaker credit profile," Matthias Heck, Moody’s vice president and senior analyst, said in a news release.

"The rating is already weakly positioned, and a weakening of its business profile through a spin-off or disposal of a significant part of the business would require corresponding capital structure to retain an investment grade rating, which we believe will be challenging to achieve.”

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