...Rating Derivation versus Peers Peer Comparison Siemens has a financial profile which is moderate for, and broadly in line with, an `A' category diversified manufacturer/capital goods company. FFO generation is relatively stable, Fitch expects it to gradually increase in the short to medium term, although FCF will probably remain weak for the rating owing to the somewhat high dividend payout and capex needs. Industrial operations leverage is also broadly in line with the expectations for a `A' company, although there remains little headroom given the present negative guidelines without additional disposals. Offsetting the relative weakness of the cash-flow profile and a rather moderate capital structure for the rating is the company's business profile. Siemens' diversity of industrial operations is highly supportive of its credit profile, as it helps protect the group from weaknesses and cyclical swings in specific products, sectors or geographical regions. The company has a highly diversified...
