Moody's changes Kongsberg view to stable

Moody's Investors Service said it changed Kongsberg Automotive ASA’s outlook to stable from negative.

Concurrently, Moody's affirmed Kongsberg's B1 corporate family rating and the B1-PD probability of default rating. Moody's also affirmed the B1 rating of the €275 million guaranteed senior secured notes issued by Kongsberg's financing subsidiary Kongsberg Actuation Systems BV.

"The stabilization of Kongsberg's outlook reflects the continued recovery of the automotive industry globally and the expectation that Kongsberg will be able to improve profitability materially and start generating positive free cash flow in 2021," said Matthias Heck, a Moody's vice president, senior credit officer and lead analyst for Kongsberg in a press release.

"The rating affirmation reflects the expectation that the improvements will lead to leverage and margin levels required for the B1 in 2021 already and improve further in 2022," added Heck.

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