COVID-19 Leads To Downgrades Of BMW And Daimler; Outlook On VW Now Negative - S&P Global Ratings’ Credit Research

COVID-19 Leads To Downgrades Of BMW And Daimler; Outlook On VW Now Negative

COVID-19 Leads To Downgrades Of BMW And Daimler; Outlook On VW Now Negative - S&P Global Ratings’ Credit Research
COVID-19 Leads To Downgrades Of BMW And Daimler; Outlook On VW Now Negative
Published Mar 26, 2020
5 pages (2551 words) — Published Mar 26, 2020
Price US$ 150.00  |  Buy this Report Now

About This Report

  
Abstract:

The COVID-19 pandemic has triggered a rapid decline in global auto demand, and we now envisage materially lower auto sales leading to intense pressure on automakers. In response to the weaker demand, German automakers Volkswagen (VW), BMW, and Daimler have announced production shutdowns, and we expect their revenues and cash flow will take a hit in 2020 before market conditions recover next year. We are lowering our long-term ratings on BMW and Daimler by one notch, while revising our outlook on VW to negative. The negative outlooks indicate risks linked to the duration of the COVID-19 pandemic and its impact on the global auto industry and on the three automakers in particular. MILAN (S&P Global Ratings) March 26, 2020--S&P Global

  
Brief Excerpt:

...- The COVID-19 pandemic has triggered a rapid decline in global auto demand, and we now envisage materially lower auto sales leading to intense pressure on automakers. - In response to the weaker demand, German automakers Volkswagen (VW), BMW, and Daimler have announced production shutdowns, and we expect their revenues and cash flow will take a hit in 2020 before market conditions recover next year. - We are lowering our long-term ratings on BMW and Daimler by one notch, while revising our outlook on VW to negative. - The negative outlooks indicate risks linked to the duration of the COVID-19 pandemic and its impact on the global auto industry and on the three automakers in particular. MILAN (S&P Global Ratings) March 26, 2020--S&P Global Ratings today took rating actions on three Germany-based automakers. - We lowered our long-term issuer credit ratings on BMW AG to 'A' from 'A+' and affirmed our 'A-1' short-term issuer credit ratings. - We also lowered our long-term issuer credit ratings...

  
Report Type:

Ratings Action

Ticker
BMW@GR
Issuer
BMW AG
GICS
Automobile Manufacturers (25102010)
Sector
Global Issuers, Structured Finance
Country
Germany
Region
United States
Format:
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "COVID-19 Leads To Downgrades Of BMW And Daimler; Outlook On VW Now Negative" Mar 26, 2020. Alacra Store. Nov 07, 2026. <http://www.alacrastore.com/s-and-p-credit-research/COVID-19-Leads-To-Downgrades-Of-BMW-And-Daimler-Outlook-On-VW-Now-Negative-2403151>
  
APA:
S&P Global Ratings’ Credit Research. (). COVID-19 Leads To Downgrades Of BMW And Daimler; Outlook On VW Now Negative Mar 26, 2020. New York, NY: Alacra Store. Retrieved Nov 07, 2026 from <http://www.alacrastore.com/s-and-p-credit-research/COVID-19-Leads-To-Downgrades-Of-BMW-And-Daimler-Outlook-On-VW-Now-Negative-2403151>
  
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