Moody’s lifts KUKA from junk

Moody's Investors Service said it assigned a long-term issuer rating of Baa3 to KUKA AG, representing an investment-grade upgrade of the company’s ratings.

The outlook is stable.

Moody's also said it withdrew KUKA's corporate family rating of Ba1 and probability of default rating of Ba1-PD following the assignment of the investment-grade issuer rating.

The upgrades were triggered by the completion of its takeover by Midea Group Co., Ltd. and acknowledges its consistently solid performance and strong capital structure, the agency explained.

The upgrades also consider an expectation that the company's performance in China may benefit from the Chinese ownership, Moody’s said.

The rating also incorporates expectations of some parental support from Midea if needed, the agency added.

Midea now owns 94.55% of KUKA shares, making KUKA an integral part of the Midea group, Moody’s said.

The acquisition enables the extension of Midea’s automation strategy and complements Midea's development of intelligent home systems, the agency said.

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