Moody's: Heidelberger Druckmaschinen notes Caa1

Moody's Investors Service said it assigned a definitive Caa1 rating to the €304 million senior unsecured notes due in 2018 issued by Heidelberger Druckmaschinen AG.

Its B2 corporate family rating remains unchanged.

The outlook is positive.

The ratings reflect the company's relatively high leverage with an adjusted debt-to-EBITDA ratio of 6.3x, Moody's said.

Following a major cyclical downturn in the last two years, the company is now showing first signs of performance improvements, which should lead to a gradually improving leverage in the course of the next financial year, the agency said.

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

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