Research Update: KUKA Outlook Revised To Positive On Strong Credit Metrics; 'BB-' Rating Affirmed After Refinancing Dec 13
- Language: English
- Published: December 2013
The -202 8.75% million second-lien secured notes issued by Germany-based industrial robotics manufacturer KUKA AG (B/Stable/--) are rated 'B-' with a recovery rating of '5'. We believe that the company would reorganize in the event of a default, with some of its less competitive parts liquidated. Our simulated default scenario contemplates a default in 2014 as a result of weak demand arising from soft market conditions, low profitability due to pricing pressure from competition, and pressure on working capital. The recovery rating of '5' on the notes reflects our view that the noteholders would achieve modest (10%-30%) recoveries in the event of a payment default, assuming 75% cash collateralization on the prior-ranking guarantee lines. The -202 million notes issued by...
Companies mentioned in this report are: KUKA AG
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Research Type: Full Analysis