S&P lifts KUKA to positive

S&P said it revised the outlook on KUKA AG to positive from stable.

The agency also said it affirmed the company’s BB+ long-term corporate credit rating.

The outlook revision reflects a view of KUKA's sound operating and financial performance and improving key credit metrics, S&P said.

In 2015, the company experienced sustained sales expansion due to growth in its end markets and relatively stable operating margins, the agency explained.

In May, Midea announced its intention to launch a voluntary takeover offer for all outstanding shares of KUKA at €115 per share, S&P said.

The completion of the takeover offer will be subject to certain conditions and the agency said it hasn’t factored in any parental support into the rating on KUKA at this stage as the offer is still pending.

Midea's group credit profile is currently assessed at A-, S&P said.

The ratings reflect the company's below average profitability compared with those achieved by many similar-sized companies operating in other segments of the capital goods sector, the agency said.

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