Fitch: Kamps outlook negative

Fitch Ratings said it changed the outlook of Kamps AG to negative from positive and affirmed the senior unsecured rating at BB.

This action follows the publication of Kamps' interim results, which point to a deterioration in its credit protection measures for fiscal 2004. Fitch had assigned the positive outlook in February based on the assumption that "although management anticipates an increase of net debt in both FY04 and FY05 as a result of a large capital expenditure requirement and lower-than-historically operating cash flow generation, EBITDA/net interest and net debt/EBITDA are unlikely to deteriorate from the FY03 pro forma levels" of respectively c.2.5x and c.4.5x.

This stability of ratios is no longer expected to be the case and Fitch now believes that Kamps' restructuring - the Transformation Project - is unlikely to deliver sufficient upsides for Kamps to gain sustainable cash flow generation more quickly than originally projected.

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