Moody's downgrades Thiel Logistik

Moody's Investors Service said it downgraded all the ratings of Thiel Logistik AG prompted by further weakness in the operating profile of the company, expected lower profitability for the full year 2005 and the departure of key management figures.

Moody's downgraded the company's corporate family rating to B2 from B1 and the €130 million 8% senior subordinated notes due 2012 to Caa1 from B3.

The outlook remains negative.

Moody's said Thiel's operating performance continued to be challenged in the second quarter, prompting a second downward revision of profitability for the full year 2005. The recently announced reduction, of about €5-10 million, primarily relates to one-off costs in the furniture business and margin pressure in the automotive division, however, Moody's expects the negative trends affecting Thiel's key operating businesses to continue, not least given the company's exposure to the German economy and the automotive industry.

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