Alstom: Moody's downgrades credit rating
(CercleFinance.com) - Moody's Investors Service says that it has downgraded its long-term issuer rating for Alstom from "Baa2" to "Baa3" while improving its outlook on the transport equipment maker from "negative" to "stable".
The agency points out that Alstom has postponed its margin target from 8%-10% by one year to 2025-26, which, combined with the higher interest rate environment and continued execution of loss-making contracts, it says will likely limit free cash flow.
Also judging that the group remains exposed to execution risks and broader macroeconomic developments, Moody's considers Alstom's credit profile to be better positioned in the "Baa3" rating category.
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The agency points out that Alstom has postponed its margin target from 8%-10% by one year to 2025-26, which, combined with the higher interest rate environment and continued execution of loss-making contracts, it says will likely limit free cash flow.
Also judging that the group remains exposed to execution risks and broader macroeconomic developments, Moody's considers Alstom's credit profile to be better positioned in the "Baa3" rating category.
Copyright (c) 2023 CercleFinance.com. All rights reserved.