(CercleFinance.com) – Moody’s Investors Service indicates that it has lowered its long-term issuer rating for Alstom from ‘Baa2’ to ‘Baa3’ while changing its outlook on the transport equipment manufacturer from ‘negative’ to ‘stable’ .
The agency points out that Alstom has postponed its margin target of 8-10% from one year to the 2025-26 financial year, which, combined with the environment of higher rates and the continued execution of contracts loss-making, will probably limit free cash-flows.
Also judging that the group remains exposed to execution risks and broader macroeconomic developments, Moody’s considers that Alstom’s credit profile is better positioned in the ‘Baa3’ rating category.