Moody’s lifts KUKA CFR to Ba1

Moody's Investors Service said it upgraded KUKA AG's corporate family rating to Ba1 from Ba2 and probability of default rating to Ba1-PD from Ba2-PD.

The outlook was changed to stable from positive.

Moody’s said the action primarily reflects KUKA building a further track record of maintaining a conservative balance sheet, as exhibited by the company’s debt/EBITDA, as adjusted by Moody's, staying at or below 2 times.

In combination with the relatively high cash balance this provides for a sufficient cushion of the capital structure to weather a potential downturn in its end markets.

In addition, the action reflects KUKA's business profile which has improved considerably over the past couple of years by KUKA diversifying away from its core customer industry, the auto sector, into other general industries, the agency added.

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