Valeo: Moody's downgrades credit rating

(CercleFinance.com) - On Friday evening Moody's Investors Service announced that it had downgraded its long-term issuer rating on Valeo from "Baa2" to "Baa3," while adopting a "stable" outlook, versus "negative" previously.


The downgrading of Valeo's rating is justified by the continued deterioration in the global automotive market and its negative impact that this would have on Valeo's credit parameters, Matthias Heck, analyst at the rating agency explained.

However, he pointed out that his "stable" outlook in particular reflects the expectation that Valeo will be able to maintain its EBITDA margin at over 4.5% and reach a debt/EBITDA ratio of 3.5x in the next 12 to 18 months.



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