S&P: Koninklijke Philips view to negative

Standard & Poor’s said it revised the outlook on Koninklijke Philips NV to negative from stable.

The agency also said it affirmed the company’s A- long-term and A-2 short-term corporate credit ratings.

The negative outlook reflects the risk that, following the planned spin-off of the group’s lighting sector, the company’s credit profile may no longer benefit from the same degree of business diversity, S&P said.

The long-term rating on Philips currently includes a one-notch uplift reflecting its superior business diversity, the agency said.

Philips intends to spin off the lighting operations into a separate legal structure over the coming 12 to 18 months, S&P said, and is considering various alternative ownership structures for it.

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