Moody’s upgrades KraussMaffei CFR, notes to B1

Moody's Investors Service said it upgraded KraussMaffei Group GmbH’s corporate family rating to B1 from B2and probability of default rating to B1-PD from B2-PD.

At the same time, the agency upgraded the rating on the group's senior secured notes due December 2020 to B1 (LGD3) from B2 (LGD3).

The outlook remains stable.

"Today's upgrade recognizes the sustained improvement in KraussMaffei Group's operating performance over the last two years and credit metrics reaching levels that we consider commensurate with the B1 rating category," Goetz Grossmann, Moody's lead analyst for KraussMaffei, said in a news release.

"The rating action also reflects our expectation that KraussMaffei Group will benefit from an overall supportive business environment in 2015 and during next year and that additional cost savings from implemented restructuring measures will promote a further strengthening in profitability and leverage ratios."

Moreover, Moody’s said the upgrade factors in the group's reduced indebtedness following its redemption of €32.5 million worth of senior secured notes in December 2014, which lowered the group's annual interest costs by about €3 million.

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