German automotive component and systems and industrial bearings manufacturer Schaeffler has announced its intention to issue new unsecured notes to refinance some existing debt. The final amount of the notes will depend on market conditions. We are assigning 'BBB-' ratings to the proposed notes, whose issuance will lengthen the group's debt maturity profile. We are affirming our 'BBB-' issuer credit ratings on IHO group, which includes Schaeffler AG and its holding companies. The stable outlook reflects our expectations that the group will tightly control costs and investments to mitigate the impact from an intensifying competitive environment. The affirmation follows Schaeffler's announcement of its plan to raise debt to repay part of its capital structure, including its senior unsecured notes due
