AMS Osram - comment

Moody’s has revised the outlook on AMS Osram’s B3 rating to positive, reflecting the company’s improving credit profile. The announced asset disposal, together with liquidity released from changes to the pension scheme, has materially strengthened the balance sheet and improved the company’s ability to address upcoming maturities. We were somewhat surprised that Moody’s did not upgrade the rating to B2, although the agency continues to flag concerns around free cash flow generation in FY26 and the business’s sensitivity to movements in gold prices.