International credit rating agency Moody’s has announced that it has changed the outlook of Germany-based steelmaker ThyssenKrupp to stable from developing and affirmed its Ba2 ratings.
Moody’s stated that the stabilization of the outlook and rating affirmation of ThyssenKrupp reflects its expectation that the company will close its pending joint venture with global steel giant Tata Steel at the recently agreed favorable terms, and will be able to restore its credit metrics to the levels commensurate with the Ba2 rating over the next 12-18 months. Moody's expects that the group's future strategy, after the uncertainties regarding the CEO position are resolved, will not result in a material revision of its currently implemented financial improvement measures and medium-term targets.
Moody's also expects ThyssenKrupp to be able to gradually strengthen its profitability and cash flow generation to more appropriate levels for the Ba2 rating as the group progresses with its improvement and restructuring efforts across its remaining business areas over the next two to three years.