The Germany-based manufacturer of automotive components and systems, and industrial bearings, IHO group, which includes Schaeffler AG and its holding companies, has further reduced its debt over the past 12 months. We expect credit metrics to improve further in 2017 and 2018, on the back of healthy cash flow generation and retention of cash within the group to reduce adjusted debt. We are revising our outlook on Schaeffler AG and holding company IHO Verwaltungs GmbH to positive from stable and affirming our 'BB+' long-term rating on both entities. The positive outlook reflects our expectation that the IHO group's key credit ratios will continue to improve, and in particular adjusted funds from operations to debt will gradually climb toward 30% by
