Moody's: Siemens view negative

Moody's Investors Service said it changed to negative from stable the outlook on the Aa3 and Prime-1 senior debt ratings of Siemens AG and affirmed the ratings.

The outlook change primarily reflects that persistent and substantial writedowns on larger projects and a failed attempt to enter the solar equipment business remain a source of uncertainty for Siemens' financial performance in 2013 and 2014, leaving its ratings weakly positioned in the current category, the agency said, adding that Siemens is also affected by cyclical weakness in some of its core product areas and by weak demand in the European market.

Moody's said the Aa3 rating is underpinned by an assumption that the group will be able to attain stronger financial ratios over the medium term, such as a debt-to-EBITDA ratio around 2 times.

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