Global premium carmaker BMW AG has cut its 2026 automotive EBIT margin guidance to negative 0.5% to 0.5%, mainly reflecting restructuring measures aimed at improving profitability amid a steep decline in sales and intense competition in China, and ongoing earnings pressure such as U.S. tariffs. We expect these factors to constrain our adjusted EBITDA margin and free operating cash flow (FOCF)-to-sales metrics to about 10% and about 1%, respectively, in 2027 before improving in 2028, albeit with limited prospects for reverting to pre-2024 levels. We therefore lowered our long- and short-term issuer credit ratings on BMW and its rated subsidiaries to'A-/A-2'from'A/A-1'. We also lowered our senior unsecured issue rating to'A-'from'A'. The negative outlook reflects
