Moody's lowers Heidelberger view to negative

Moody's Investors Service said it affirmed Heidelberger Druckmaschinen AG's B2 corporate family and probability of default ratings, as well as the Caa1 rating on the €304 million senior unsecured notes due 2018.

The outlook was changed to negative from positive.

The outlook change reflects a view that heightened macroeconomic uncertainty in Europe and North America starts to dampen demand for printing press equipment, leading to a slower than previously expected recovery in the group's operating performance and credit metrics, Moody's said.

It also considers also the company's current debt-to-EBITDA ratio of 6.4x, the agency said, and the continued negative free cash flow generation .

The ratings are balanced by the company's strong competitive position as the global leading manufacturer of sheet-fed offset printing presses and related equipment, Moody's added.

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