Research Update: Auto And Industrial Supplier Schaeffler AG Downgraded To 'BB+' On Weaker Credit Metrics From COVID-19; Off Watch - S&P Global Ratings’ Credit Research

Research Update: Auto And Industrial Supplier Schaeffler AG Downgraded To 'BB+' On Weaker Credit Metrics From COVID-19; Off Watch

Research Update: Auto And Industrial Supplier Schaeffler AG Downgraded To 'BB+' On Weaker Credit Metrics From COVID-19; Off Watch - S&P Global Ratings’ Credit Research
Research Update: Auto And Industrial Supplier Schaeffler AG Downgraded To 'BB+' On Weaker Credit Metrics From COVID-19; Off Watch
Published Jul 20, 2020
9 pages (3938 words) — Published Jul 20, 2020
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

We anticipate that German auto and industrial component supplier Schaeffler AG's auto original equipment manufacturing (OEM) segment will suffer severely from subdued production volumes following the COVID-19 pandemic, which are unlikely to reach 2019 levels before 2022-2023, and its industrial segment will also suffer, given our bleak macroeconomic outlook. As a result, we believe that IHO Verwaltungs GmbH (IHO group), Schaeffler's parent, will find it challenging to swiftly restore credit metrics in line with an investment-grade rating over the next two years. We are therefore lowering our long-term issuer rating on Schaeffler AG and parent IHO Verwaltungs to 'BB+' from 'BBB-'; and our issue rating on Schaeffler's unsecured debt to 'BB+' from 'BBB-' and our issue rating on IHO's secured

  
Brief Excerpt:

...- We anticipate that German auto and industrial component supplier Schaeffler AG's auto original equipment manufacturing (OEM) segment will suffer severely from subdued production volumes following the COVID-19 pandemic, which are unlikely to reach 2019 levels before 2022-2023, and its industrial segment will also suffer, given our bleak macroeconomic outlook. - As a result, we believe that IHO Verwaltungs GmbH (IHO group), Schaeffler's parent, will find it challenging to swiftly restore credit metrics in line with an investment-grade rating over the next two years. - We are therefore lowering our long-term issuer rating on Schaeffler AG and parent IHO Verwaltungs to '##+' from '###-'; and our issue rating on Schaeffler's unsecured debt to '##+' from '###-' and our issue rating on IHO's secured debt to '##-' from '##+'. - We are removing all ratings from CreditWatch with negative implications, where they were placed April 3, 2020. - The stable outlook reflects our view that the group has...

  
Report Type:

Research Update

Issuer
Schaeffler AG
GICS
Auto Parts & Equipment (25101010)
Sector
Global Issuers
Country
Germany
Region
Europe, Middle East, Africa
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Auto And Industrial Supplier Schaeffler AG Downgraded To 'BB+' On Weaker Credit Metrics From COVID-19; Off Watch" Jul 20, 2020. Alacra Store. May 06, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Auto-And-Industrial-Supplier-Schaeffler-AG-Downgraded-To-BB-On-Weaker-Credit-Metrics-From-COVID-19-Off-Watch-2481523>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Auto And Industrial Supplier Schaeffler AG Downgraded To 'BB+' On Weaker Credit Metrics From COVID-19; Off Watch Jul 20, 2020. New York, NY: Alacra Store. Retrieved May 06, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Auto-And-Industrial-Supplier-Schaeffler-AG-Downgraded-To-BB-On-Weaker-Credit-Metrics-From-COVID-19-Off-Watch-2481523>
  
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