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Alstom (Baa3): Cross Asset

CAPITAL GOODS

• Equity up strongly today continuing its recovery move – now +20% YTD.

• Bonds have lagged if anything, with ALOFP 29s now towards the wide end of the Fallen Angel risk universe.

• With management committed to an IG rating, we see room for upside if FCF can be improved. Asset sales and equity raise are possible options to strengthen the balance sheet if required.

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