Moody’s revises SGL Carbon to positive

Moody's Investors Service said it changed the outlook for SGL Carbon SE to positive from stable and affirmed its Caa1 corporate family rating, Caa1-PD probability of default rating and the B3 rating on its existing €250 million of senior secured notes due 2021.

"Our decision to change SGL Carbon's outlook to positive reflects the improvement in the company's financial results with solid growth of both sales from the continuing operations and profitability. We also see as a positive credit factor the two agreements reached for the sale of the former Performance Product (PP) business unit and the announcement of the debt repayment from the net proceeds to be received," Moody’s vice president, senior analyst Hubert Allemani said in a news release.

"We expect that the proposed debt repayment will reduce the Moody's adjusted leverage to around 6x, which would be more commensurate with a higher rating category."

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