Moody’s affirms Thyssenkrupp’s credit rating, changes outlook to stable

Tuesday, 16 March 2021 17:28:38 (GMT+3)   |   Istanbul
       

International credit rating agency Moody’s has affirmed the German steelmaker Thyssenkrupp AG’s B1 corporate family credit rating, while its outlook for the company’s rating changed to stable from developing.

According to Moody’s, the affirmation of Thyssenkrupp’s corporate family rating at B1 shows the expectation that the company will retain a prudent financial policy, while it also reflects the company’s liquidity profile. The outlook stabilization follows the company’s decision to develop its Steel Europe business area on a standalone basis. The decision removes uncertainty regarding the company’s future business profile and strategy in the near term, which had been reflected in the previous developing outlook.

Furthermore, the outlook change reflects a gradually improving operating performance and a reduction of negative free cash flow generation. As a consequence of the ongoing implementation of efficiency measures in all divisions combined with an improving market environment, Thyssenkrupp’s operating performance is expected to strengthen further over 2021-22.


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