(Ad-hoc) S&P downgrades Dürr rating by one notch to "B+"
03/18/2005 - Dürr AG - WKN 556520 / ISIN DE0005565204
Standard & Poor's has downgraded Dürr AG's credit rating from "BB-" to "B+". The rating agency notified the company of its action this morning. The rating outlook is stable.
The reasons cited for the decision are the past year's earnings performance and the currently difficult environment in the automotive industry. S&P also refers to comparison with other companies in the same rating and sector categories.
S&P has lowered the issue rating for Dürr's subordinated corporate bond placed in July for EUR 200 million from "B" to "B-". The outlook is stable.
The management intends to improve the company's rating as soon as possible through efficiency gains achieved by the ongoing SPRINT SQUARED earnings enhancement program and greater market clout resulting from the new corporate structure implemented at the beginning of March. The main goal is to raise earning power and reduce financial debt.
Dürr had reported preliminary business figures on February 23 and announced the realignment of its group structure. The plant and mechanical engineering company is thus concentrating on its strengths and arranging its operations in two divisions: Paint and Assembly Systems and Measuring and Process Systems.
Dürr AG
The executive board
End of disclosure
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