Moody's ups Piaggio to Ba2

Moody's Investors Service said it upgraded Piaggio & C SpA corporate family rating to Ba2 from Ba3 and upgraded the senior unsecured rating on the notes issued by Piaggio Finance SA to Ba2 from Ba3.

The outlook is stable.

The upgrade reflect a consolidation of the company's key credit metrics in the Ba rating category and the prospects for further improvement going forward, the agency said.

The upgrade also reflects the progress made by the company since ratings were last upgraded in May 2006, Moody's said. Over the last year, the company has continued to improve its operating performance and strong cash flow generation resulted in sustained solid key credit metrics, the agency said.

Although given the seasonality and volatility of the business due to fierce competition and the dependence on new product launches, Moody's said the company has to maintain stronger credit metrics than the rating category would imply.

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