The rating agency maintained ATS's probability of default rating at Ba3-PD, senior unsecured rating at B1, and speculative grade liquidity rating at SGL-2. "The change in outlook reflects that ATS' debt to EBITDA will remain above 3.5x over the next 12 to 18 months after the planned transition away from transportation and the challenges faced during FY25 due to the EV customer issue," said Will Gu, Moody's Ratings analyst. Despite high financial leverage of approximately 4.5x (adjusted for debt repayment from EV settlement proceeds), Moody's noted that ATS maintains strong revenue visibility with a trailing twelve-month book-to-bill ratio well above 1x and a healthy backlog supporting expectations for a return to organic growth.