LONDON (Thomson Financial) - Moody's Investors Service said it cut the
senior debt ratings of Siemens AG, Germany's largest electronics and electrical
equipment company, to 'A1' from 'Aa3'.
Moody's also lowered the rating on the junior subordinated bonds of Siemens
Financierings Maatschappij NV to 'A3' from 'A2'.
The outlook for all ratings is stable.
The downgrade reflects management's decision to use leverage more
effectively, raising the adjusted industrial net debt/EBITDA ratio for the two
already announced transactions, the sale of Siemens VDO and the acquisition of
Dade Behring Inc, Moody's said.
Moody's added the 'A1' rating and stable outlook reflect the current,
refocused business profile of Siemens, an expectation of further moderate
improvements in profitability and cash flows and the full migration to the
target leverage ratio.
TFN.newsdesk@thomson.com
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