Research Update: German Truck Manufacturer TRATON SE Affirmed At 'BBB' Upon Navistar Acquisition; Outlook Stable - S&P Global Ratings’ Credit Research

Research Update: German Truck Manufacturer TRATON SE Affirmed At 'BBB' Upon Navistar Acquisition; Outlook Stable

Research Update: German Truck Manufacturer TRATON SE Affirmed At 'BBB' Upon Navistar Acquisition; Outlook Stable - S&P Global Ratings’ Credit Research
Research Update: German Truck Manufacturer TRATON SE Affirmed At 'BBB' Upon Navistar Acquisition; Outlook Stable
Published Jul 09, 2021
7 pages (3174 words) — Published Jul 09, 2021
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

On July 1, 2021, German truck manufacturer, TRATON SE completed the acquisition of Navistar International Corp., giving it direct access to the American truck market. TRATON has strong ties with its parent Volkswagen AG (VW) and we do not expect VW to reduce its stake in TRATON below 75%. Therefore, we view it as a highly strategic subsidiary of the VW group. Even though the acquisition will cause TRATON's adjusted debt to spike to about €8.0 billion-€8.5 billion in 2021 (from about €3.0 billion in 2020), this has a neutral impact on its rating and we affirmed our 'BBB' long-term issuer credit rating on TRATON based on our expectation of group support. The stable outlook on TRATON mirrors that on

  
Brief Excerpt:

...- On July 1, 2021, German truck manufacturer, TRATON SE completed the acquisition of Navistar International Corp., giving it direct access to the American truck market. - TRATON has strong ties with its parent Volkswagen AG (VW) and we do not expect VW to reduce its stake in TRATON below 75%. Therefore, we view it as a highly strategic subsidiary of the VW group. - Even though the acquisition will cause TRATON's adjusted debt to spike to about 8.0 billion-8.5 billion in 2021 (from about 3.0 billion in 2020), this has a neutral impact on its rating and we affirmed our '###' long-term issuer credit rating on TRATON based on our expectation of group support. - The stable outlook on TRATON mirrors that on VW, which owns 89.7% of the company....

  
Report Type:

Research Update

Issuer
TRATON SE
GICS
Construction & Farm Machinery & Heavy Trucks (20106010)
Sector
Global Issuers
Country
Germany
Region
Europe, Middle East, Africa
Format:
PDF Adobe Acrobat
Buy Now

More from S&P Global Ratings’ Credit Research

S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

About the Author


Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: German Truck Manufacturer TRATON SE Affirmed At 'BBB' Upon Navistar Acquisition; Outlook Stable" Jul 09, 2021. Alacra Store. Nov 07, 2026. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-German-Truck-Manufacturer-TRATON-SE-Affirmed-At-BBB-Upon-Navistar-Acquisition-Outlook-Stable-2685822>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: German Truck Manufacturer TRATON SE Affirmed At 'BBB' Upon Navistar Acquisition; Outlook Stable Jul 09, 2021. New York, NY: Alacra Store. Retrieved Nov 07, 2026 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-German-Truck-Manufacturer-TRATON-SE-Affirmed-At-BBB-Upon-Navistar-Acquisition-Outlook-Stable-2685822>
  
US$ 225.00
$  £  €
Have a Question?

Any questions about the report you're considering? Our Customer Service Team can help! Or visit our FAQs.

More Research

Search all our Credit Research from one place.