GEA Group AG

Earnings Release • Oct 9, 2003

News Details

Ad-hoc | 9 October 2003 21:01

mg technologies AG english

Moody’s momentarily still disregards new strategy Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Moody’s momentarily still disregards new strategy The rating agency Moody’s today informed mg technologies ag that it plans to change the company’s credit rating – currently from Baa3 – to Ba1. Around two years ago Moody’s had already put mg’s rating to negative outlook, before placing the company on its watchlist at the end of August 2003. The potentially adverse impact of the downgrade will only have limited influence on mg’s cost of funds. Due to the downgrade, the interest of the Euro-bond with a maturity of July 2005 will increase from 6.75 to 7.25 per cent. On October 2 mg announced its new strategic focus on its process engineering and components businesses and plans to divest its chemicals activities. This decision was strategically necessary. In doing so, it aims to sharpen the Group’s strategic focus and substantially repay its debt. By continuing to expand its high-potential growth businesses, mg plans to substantially enhance its value for shareholders. Its remaining core businesses will enable mg to effectively mitigate risk as a result of their various business cycles. There are already a number of prospective buyers for its chemicals business. The company believes it will have completed this disposal in the course of fiscal year 2004. mg welcomes Moody’s fundamentally positive assessment of its new strategic focus – especially the substantially improved financial flexibility, the considerable cost savings to be realised from the restructuring measures, and GEA’s solid global business position in its capacity as the Group’s earnings driver. Against this background the company is confident that its credit rating will soon be reviewed and upgraded. end of ad-hoc-announcement (c)DGAP 09.10.2003 ——————————————————————————– WKN: 660200; ISIN: DE0006602006; Index: MDAX Listed: Amtlicher Markt in Berlin-Bremen, Düsseldorf, Frankfurt (Prime Standard), Hamburg und München; Freiverkehr in Hannover und Stuttgart 092101 Okt 03