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Research Update: S&PCORRECT: Electrolux AB Long-Term Rating Cut To 'BBB'; 'A-2' Affirmed; Outlook Stable Dec 08 Product Image

Research Update: S&PCORRECT: Electrolux AB Long-Term Rating Cut To 'BBB'; 'A-2' Affirmed; Outlook Stable Dec 08

  • ID: 2035692
  • December 2008
  • Standard & Poors

Abstract
On Dec. 17, 2008, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Sweden-based domestic appliances manufacturer Electrolux AB (Electrolux) to 'BBB' from 'BBB+', following management's profit warning earlier this week and its decision to incur a Swedish krona (SEK) 1.2 billion ($178 million) charge for headcount reduction. The Nordic national scale rating on Electrolux was also lowered, to 'K-2' from 'K-1'. At the same time, the 'A-2' short-term rating on the group was affirmed. The outlook is stable. This rating action reflects our expectation that the group's future credit metrics will no longer be in line with our requirements for a 'BBB+' rating, owing to changed market conditions that have necessitated continuous restructuring measures. Electrolux's leeway...

Companies mentioned in this report are: Electrolux AB
Action: Downgraded

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.

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Electrolux AB

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