Ams OSRAM - comment

Moody’s downgraded AMS Osram from B2 to B1 on the back of the already published weaker operating performance of 2023.  Moody concurs with our view that the current negative free cashflow generation will be turned around over the next quarters and has sufficient liquidity.  

There is nothing new in the downgrade - recent negative free cashflow with further investment in the new production capacity leading to further negative cashflow prior to the debt maturities coming up in 2025.  The flip side is also reflected in the ratings, with upside potential once the Micro-LED has gained meaningful production levels.