Moody's changes SGL view to positive

Moody's Investors Service said it changed SGL Carbon SE's outlook to positive from negative.

“The change of the outlook on SGL's rating reflects i) improvements in the company's liquidity profile as a result of proactive liquidity management as well as positive FCF generation and ii) progress in the execution of the company's restructuring program,” the agency said in a press release.

Moody's said it forecasts that continued solid demand in some key end-markets such as wind energy, semiconductor and the automotive industry will help deleveraging to under 7x by year end 2021 from 8.9x (excluding equity accounted income and non-recurring positive one off's but including restructuring expenses) as of June.

The agency said it also projects sound operating performance in combination with continued capex discipline will result in positive FCF for the year.

Moody’s concurrently affirmed SGL’s corporate family rating and the probability of default rating at Caa1 and Caa1-PD respectively and the B3 rating of the €250 million of guaranteed senior secured notes.

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