...+ In the first nine months of 2018, Lumileds reported negative free cash flow generation of about $105 million. Despite some expected positive free cash flow for the fourth quarter, we anticipate earnings to decline moderately, a significant buildup of working capital, and some one-time factors will lead to a significantly negative free operating cash flow in 2018 (-$40 million to -$60 million). + We expect management to address the situation by stepping up cost savings efforts, while maintaining extensive R&D investments that should allow the group to cope with the technological shift from conventional lighting solutions to LED, thanks to its constant efforts in adjusting its cost base and extensive technological expertise. + On Dec. 24, 2018, we affirmed our 'B' long-term issuer credit rating on Bright Bidco B.V. We also affirmed the 'B' issue rating on the $1,671 million first-lien term loan B and Bright Bidco's $200 million revolving credit facility (RCF). The recovery rating is '3',...
