Moody's rates Heidelberger B2, notes Caa1

Moody's Investors Service said it assigned a B2 corporate family rating and probability of default rating to Heidelberger Druckmaschinen AG, along with a provisional Caa1 rating to the company's proposed issuance of €300 million worth of senior notes, which are issued in the context of a refinancing of the company's existing debt package.

The outlook is positive.

The ratings reflect an expectation that Heidelberger - despite showing first signs of performance improvements following a major cyclical downturn - will exhibit a relatively high leverage with still comparatively low levels of profitability and negative free cash flow generation, Moody's said.

While the relatively weak initial credit metrics is a constraining factor, the agency also noted the company's strong business profile with leading market positions and a diversified geographic footprint.

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