Moody’s raises Stabilus

Moody's Investors Service said it upgraded the corporate family rating of Stabilus SA to B1 from B2 and the probability of default rating to B1-PD from B2-PD.

At the same time, the agency upgraded the instrument ratings assigned to the senior secured notes issued by Servus Luxembourg Holding SCA to B1 from B2.

The outlooks remain positive.

Moody’s said the action was prompted by (a) the strong operational performance Stabilus has achieved in its fiscal year 2014; (b) 12 product launches in Powerise, an automated vehicle tailgate opening system, in 2014 and a pipeline of another 20 for 2015 which should result in further revenue growth; and (c) by the expectation of substantially reduced interest expense following the assumed early redemption of the outstanding 2018 bonds, most likely in mid 2015, as indicated in December.

"With the achievement of more than 10% revenue growth in FY2014, together with improving profitability – operating margin increased to 8.6% from 7% year-over-year – and a solid pipeline of new product launches Stabilus has further strengthened its position in its market niche," Oliver Giani, Moody's lead analyst for the European automotive supplier industry, said in a news release.

"In particular the market share win in automated systems, where Stabilus reported 55% revenue growth, provides comfort for a continuation of the company's solid performance."

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