Moody's upgrades KION

Moody's Investor Services said it upgraded the debt instruments issued by KION Finance SA to Ba3 (LGD3, 35%) from B2 (LGD2, 23%), assigned a Ba3 corporate family rating and a B1-PD probability of default rating to KION Group AG (previously KION Holding 1 GmbH) and withdrew the B3 corporate family rating and Caa1-PD probability of default rating of KION Material Handling GmbH (previously KION Group GmbH).

This concludes the review that began on June 5, and the outlook is now stable.

The agency said the reassignment of the corporate family rating to the KION Group level is due to the fact that, going forward, there may not be enough information available to monitor the rating at the KION Material Handling level.

The three-notch upgrade of the corporate family rating reflects the significant improvement in KION's net leverage following its successful initial public offering, Moody's said. Around €900 million of the proceeds were applied to debt reduction. According to Moody's calculations, Moody's-adjusted pro forma leverage for 2012 is around 4.6 times, compared to 6.7 times previously.

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