(Ad-hoc) Moody’s puts Dürr rating on the same level as S&P
10/27/2005 - Dürr AG - WKN 556520 / ISIN DE0005565204
Moody’s has downgraded the Dürr AG company rating from “B1” to “B2”. The rating agency notified the company of this action this afternoon. The outlook on the company rating is negative.
Standard & Poor’s had adjusted its rating in August from “B+” to “B”. According to Dürr Moody?s rating has already been taken into account by the market.
The reasons cited for Moody’s decision are the reduced liquidity headroom, the increase in leverage and potential risks in the implementation of the Group’s FOCUS program.
Moody’s has adjusted the issue rating for Dürr’s subordinated bond placed in July 2004 for € 200 million from “B3“ to “Caa1“. The rating agency assessed the outlook for the issue rating as negative.
The Group’s FOCUS program has been ongoing since September 2005. According to the management, FOCUS is addressing all fundamental factors that have caused the rating adjustment. Great emphasis has been placed on the implementation of FOCUS. With the implementation of the 18-month-long program significantly positive free cash flows and a clearly improved profitability are expected.
Dürr AG
The executive board
End of disclosure
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