Fitch Downgrades thyssenkrupp to 'BB-'; Outlook Stable (FII)
Fitch Ratings has downgraded thyssenkrupp AG's (TK) Long-Term Issuer Default Rating (IDR) to 'BB-' from 'BB+' and removed it from Rating Watch Negative (RWN). The Outlook is Stable. Fitch has simultaneously downgraded the senior unsecured notes' rating to 'BB-' from 'BB+'.
The rating actions reflect the weakening of TK's business profile as a result of the announced disposal of the profitable Elevator Technology (ET) business (expected to be closed by the end of the 2020 fiscal year) coupled with the expectation that following the disposal, the company's underlying cash generation is likely to be weak in the short to medium term.