Bulletin: Schaeffler AG Maintains Good Rating Headroom Despite Market Headwinds

PARIS (S&P Global Ratings) June 30, 2022--S&P Global Ratings today said that the 2022 credit metrics of INA-Holding Schaeffler GmbH&Co. KG. (IHO Group; Schaeffler AG's parent) will likely remain in line with the 'bb+' group credit profile, despite challenging market conditions and Schaeffler's second stream of large cash outflows related to restructuring charges. The about €200 million dividend payment received in May 2022 from Continental, of which IHO Group is the largest single shareholder (46%) and which we include in IHO Group's credit metrics, will mitigate Schaeffler's likely weaker free operating cash flow (FOCF) generation compared with the previous year. We estimate that Schaeffler's FOCF could decrease to €350 million-€450 million in 2022 (after cash restructuring charges of

...June 30, 2022 PARIS (S&P Global Ratings) June 30, 2022--S&P Global Ratings today said that the 2022 credit metrics of INA-Holding Schaeffler GmbH & Co. KG. (IHO Group; Schaeffler AG's parent) will likely remain in line with the '##+' group credit profile, despite challenging market conditions and Schaeffler's second stream of large cash outflows related to restructuring charges. The about 200 million dividend payment received in May 2022 from Continental, of which IHO Group is the largest single shareholder (46%) and which we include in IHO Group's credit metrics, will mitigate Schaeffler's likely weaker free operating cash flow (FOCF) generation compared with the previous year. We estimate that Schaeffler's FOCF could decrease to 350 million-450 million in 2022 (after cash restructuring charges of about 320 million) from 640 million in 2021, reflecting volatile auto production volumes, input cost inflation, and higher capital expenditure after two years of lower investments. Having said...

Bulletin