Research Update: Siemens Energy AG Assigned 'BBB' Issuer Credit Rating; Outlook Stable

Siemens AG's conventional and renewable power generation and its power transmission and industrial applications related businesses, bundled under Siemens Energy AG, will be spun-off and publicly listed on Sept. 28, 2020. The new Siemens Energy holds market leading position in all its served markets, although most of these markets are exposed to significant changes in the global energy markets, suppressing growth and operating margins. After the carve-out and a €2.1 billion cash injection by Siemens AG in May 2020, the group reports a net cash financial position, low-to-zero adjusted debt, and has ample available liquidity. We are therefore assigning our 'BBB' long-term issuer rating to the group. With the finalization of our ratings on Siemens Energy AG we are also

...- Siemens AG's conventional and renewable power generation and its power transmission and industrial applications related businesses, bundled under Siemens Energy AG, will be spun-off and publicly listed on Sept. 28, 2020. - The new Siemens Energy holds market leading position in all its served markets, although most of these markets are exposed to significant changes in the global energy markets, suppressing growth and operating margins. - After the carve-out and a 2.1 billion cash injection by Siemens AG in May 2020, the group reports a net cash financial position, low-to-zero adjusted debt, and has ample available liquidity. - We are therefore assigning our '###' long-term issuer rating to the group. - With the finalization of our ratings on Siemens Energy AG we are also assigning our '###' long-term issuer rating to Siemens Energy Global GmbH & Co. KG (Siemens Energy KG). - The stable outlook reflects our expectation that Siemens Energy will successfully operate as a publicly listed...

Research Update