Moody's upgrades Logwin

Moody's Investors Service said it upgraded Logwin AG's corporate family rating to B2 from B3 and probability of default rating to B1 from B3, along with the rating on its €65 million senior subordinated notes due December 2012 to B3 from Caa2.

The outlook is stable.

The upgrade reflects Logwin's recent €65 million partial redemption of the group's €130 million bond, Moody's said, and its improving operating performance against the backdrop of the global economic recovery.

The agency said it acknowledged the group's solid cash generation throughout 2010, which has helped to build additional liquidity to accommodate working capital swings, which are particularly pronounced in economic upturns.

But Moody's noted the group's small scale and low margins and its exposure to the cyclical automotive, fashion and consumer goods industries.

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