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Bulletin: BMW Gains Incremental Rating Headroom With Third-Quarter Earnings And Cash Flow Rebound, But 2021 Uncertainty Persists

Published Nov 05, 2020

3 pages (1555 words) — Published Nov 05, 2020

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Abstract:

FRANKFURT (S&P Global Ratings) Nov. 5, 2020--S&P Global Ratings today said that German carmaker BMW AG's (A/Negative/A-1) automotive (auto) earnings and free cash flow recovery in third-quarter 2020 slightly exceeded our base case, incrementally increasing rating headroom in the near term. That said, we think there is still meaningful uncertainty as to the pace of market recovery and BMW's operating prospects in 2021, which could make it challenging to meet our current rating requirements, including an adjusted EBITDA margin of at least 12% and adjusted free operating cash flow (FOCF) of at least €2 billion (as set out in our outlook statement: "Automaker BMW Downgraded To 'A' On Weaker Cash Flow And Revenue Prospects Due To COVID-19; Outlook Negative," published

Report Type:

Bulletin

Ticker

BMW@GR

Issuer

BMW AG

GICS

Automobile Manufacturers (25102010)

Sector

Global Issuers, Structured Finance

Country

Germany

Region

United States

Format:

PDF

BMW AG – 2020/12/15 – US$ 500.00

Bulletin: BMW Can Generate Stronger Margins And Cash Flow In 2021 While Fending Off Electric Vehicle Rivals – 2021/03/19 – Free

Research Update: Automaker BMW Outlook Revised To Stable On Stronger Margin And Cash Flow Prospects; Affirmed At 'A' – 2021/08/05 – US$ 225.00

Automaker BMW Outlook Revised To Stable On Stronger Margin And Cash Flow Prospects; Affirmed At 'A' – 2021/08/05 – US$ 150.00

BMW AG – 2021/12/16 – US$ 500.00

Bulletin: BMW Will Need Strong Operational Execution To Offset Steep Q2 Losses – 2020/08/06 – Free

Research Update: Automaker BMW Downgraded To 'A' On Weaker Cash Flow And Revenue Prospects Due To COVID-19; Outlook Negative – 2020/03/26 – US$ 225.00

COVID-19 Leads To Downgrades Of BMW And Daimler; Outlook On VW Now Negative – 2020/03/26 – US$ 150.00

BMW AG – 2019/12/19 – US$ 500.00

BMW Outlook Revised To Negative On Weakened Profitability And Cash Generation; 'A+/A-1' Ratings Affirmed – 2019/11/13 – US$ 150.00

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Cite this Report


MLA:	S&P Global Ratings’ Credit Research. "Bulletin: BMW Gains Incremental Rating Headroom With Third-Quarter Earnings And Cash Flow Rebound, But 2021 Uncertainty Persists" Nov 05, 2020. Alacra Store. Nov 07, 2026. <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-BMW-Gains-Incremental-Rating-Headroom-With-Third-Quarter-Earnings-And-Cash-Flow-Rebound-But-2021-Uncertainty-Persists-2550289>

APA:	S&P Global Ratings’ Credit Research. (). Bulletin: BMW Gains Incremental Rating Headroom With Third-Quarter Earnings And Cash Flow Rebound, But 2021 Uncertainty Persists Nov 05, 2020. New York, NY: Alacra Store. Retrieved Nov 07, 2026 from <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-BMW-Gains-Incremental-Rating-Headroom-With-Third-Quarter-Earnings-And-Cash-Flow-Rebound-But-2021-Uncertainty-Persists-2550289>

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