Moody's Investors Service confirms Alstom's Baa3 long-term issuer rating
Moody's Investors Service confirms Alstom's Baa3 long-term issuer rating
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Send an emailMoody's Investors Service confirms Alstom's Baa3 long-term issuer rating
Credit outlook lowered to Negative from Stable
Alstom reaffirms its commitment to an Investment Grade rating
12 October 2023 – The credit rating agency Moody’s Investors Service has on 12 October decided to confirm Alstom’s Baa3 long-term issuer rating. It has lowered its credit outlook to Negative from Stable. The details of the action taken by Moody’s are as follows:
|
Alstom |
Moody’s rating |
|
Outlook |
Negative (vs Stable) |
|
Issuer rating |
Baa3 (unchanged) |
|
Senior Unsecured |
Baa3 (unchanged) |
|
Short-term rating |
P-3 (unchanged) |
Source: Moody’s Investors Service
Moody’s methodology:
Moody’s is using the Global Manufacturing Companies rating methodology (published in 2021) to rate Alstom. Under this methodology, some factors (using Moody’s specific calculation) are weighted in order to assess the final rating of the Group.
Factors that could lead to a downgrade:
|
Factors |
Moody’s trigger |
|
Moody’s adjusted EBITA Margin |
<5% |
|
Moody’s adjusted leverage Gross Debt / EBITDA |
3.75x |
|
Liquidity |
FCF<0 |
|
Financial policy |
Less conservative |
Source: Moody’s Investors Service
Factors that could lead to an upgrade:
|
Factors |
Moody’s trigger |
|
Moody’s adjusted EBITA Margin |
>6% |
|
Moody’s adjusted leverage Gross Debt / EBITDA |
<2.75x |
|
Liquidity |
FCF>0 |
|
Financial policy |
Conservative |
Source: Moody’s Investors Service
Alstom anticipates the change in credit outlook will have no impact on its ability to access short-term financing and contract execution. The Group reaffirms its commitment to an Investment Grade rating. On 4 October 2023, the Group confirmed its mid-term targets regarding sales growth, book-to-bill, profitability and cash generation.
Alstom will publish its full set of results for the first half of fiscal year 2023/24 on 15 November 2023 followed by an analyst and investor call hosted by Chairman & CEO, Henri Poupart-Lafarge, and CFO, Bernard Delpit.