Continental: Moody's changes rating outlook to negative
(CercleFinance.com) - Moody's Investors Service has changed its rating outlook on German automotive parts supplier Continental from "stable" to "negative," citing a "more negative" sector environment.
The agency said the difficult market for European automotive parts suppliers is putting pressure on Continental's profit margins and financial metrics.
Moody's said it would consider cutting Conti's rating in the event of a further deterioration in margins, an increase in leverage or a weakening of the company's liquidity.
The change to negative mostly affects Continental's "Baa1" long-term rating.
The Continental share is currently up 0.4% in Frankfurt.
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