Despite lights manufacturer Bright Bidco B.V.'s (Lumileds) efforts to curb costs and investments, its liquidity position weakened in the first-half 2020 due to the severe decline in auto and smartphone production volumes. We anticipate a tough market environment over the next 12 months, which, in our view, raises concerns on the company's ability to meet its financial commitments. We are therefore lowering our ratings on Lumileds and its debt to 'CCC' from 'CCC+'. The negative outlook indicates that we could lower our rating on Lumileds further if its liquidity weakened further or if a debt restructuring occurred. the pace of market recovery from second-half 2020. Lumileds will depend on a pick-up in volumes to restore higher utilization rates in its
