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
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
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