Moody's lowers Heidelberger Druckmaschinen

Moody's Investors Service said it downgraded Heidelberger Druckmaschinen AG's corporate family rating and probability of default rating to B3 from B2. The Caa1 rating on the €304 million senior unsecured notes due 2018 remains unchanged.

The outlook remains negative.

Moody's said the action was prompted by Heidelberger Druck's announcement of a sizable restructuring program called "Focus 2012," which is expected to result in expenses of up to €150 million and material cash outflows in the next 12 to 15 months.

This will put additional pressure on already weak credit metrics, which continue to suffer from muted demand for sheetfed offset printing presses, Moody's said.

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