Alfa Laval Upgraded To 'A-' On Strong And Resilient Financial And Operational Performance; Outlook Stable May 13
- Language: English
- Published: May 2013
The rating on Swedish industrial machinery manufacturer Alfa Laval AB reflects Standard & Poor's Ratings Services' view of the company's "satisfactory" business risk profile and "modest" financial risk profile. Support for the rating comes from the company's leading market positions, good cost flexibility, strong profitability, high share of stable aftermarket sales, and fairly diverse earnings base. In addition, Alfa Laval enjoys strong and stable cash generation and in our view, demonstrates good liquidity management. These strengths are offset by the company's exposure to demand cyclicality and meaningful competition, and what we see as a shareholder-friendly and acquisitive financial policy. We believe Alfa Laval's continued strong financial performance provides headroom for potential cash and debt-funded bolt-on acquisitions. We think it likely...
Companies mentioned in this report are:
- Alfa Laval AB
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- Alfa Laval AB