Alstom: Moody's downgrades outlook for credit rating

(CercleFinance.com) - Moody's has downgraded its outlook for the Alstom's credit rating after integrating the proposed acquisition of Bombardier Transportation.
Indeed, the rating agency has lowered its outlook to stable, against a previous positive stance. Moody's has however, confirmed its long-term Baa2 credit rating for Alstom.

"The change in Alstom's outlook to stable from positive was prompted by
Alstom's announcement that it has signed a Memorandum of Understanding
with Bombardier Inc. (Bombardier) and Caisse de depôt et placement du
Quebec (CDPQ) in view of the acquisition of Bombardier Inc.'s Transportation business for an equity value of E5.8bn to E6.2bn," the rating agency said.

Moody is unlikely to consider an upgrade of Alstom's Baa2 rating in the next 12-18 months.


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