Moody's moves Alstom view to negative

Moody's Investors Service said it revised the outlook on Alstom to negative from stable. Moody's also affirmed Alstom's Baa2 issuer and senior unsecured notes ratings.

The new outlook, Moody’s said, follows Alstom's July 5 announcement of the expected €1.6 billion-1.9 billion of negative free cash flow (FCF before leases and dividends) in the first half of the financial fiscal year ending March 31, 2022 (21/22) to support the stabilization of Bombardier Transportation's (BT) legacy projects.

“While Moody's views positively the proactive actions taken by Alstom to address BT's high risk projects, the negative outlook reflects the deterioration in Alstom's credit metrics, which were already weakly positioned in the Baa2 rating category,” the agency said in a press release.

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