Forvia SE?s S&P Global Ratings-adjusted EBITDA margin declined to 7.3% in 2024 from 7.9% in 2023 due to declining automotive production in Europe and North America as well as increasing restructuring and one-off costs. As a result, its adjusted funds from operations (FFO)-to-debt ratio reached 12.0% in 2024, remaining materially below our 15% downside threshold for a third consecutive year after the acquisition of Hella GmbH in 2022. We anticipate that muted global automotive production growth, still elevated restructuring costs, and slower-than-expected asset disposals will likely constrain a rapid recovery in profitability and deleveraging in 2025. We therefore downgraded Forvia?s long-term issuer credit rating and issue rating on its unsecured debt to ?BB-? from ?BB?. The stable outlook reflects our
