The stable outlook reflects our view that IHO Group will maintain its FFO to debt above 15% and adjusted debt to EBITDA below 4x over the next 12-18 months despite challenging market conditions. We could lower our ratings on Schaeffler and the group if Schaeffler's operating performance deteriorates such that IHO Group's FFO to debt remains below 15% and debt to EBITDA exceeds 4.5x sustainably. We could raise our rating if Schaeffler's operating performance improves such that the IHO group's FFO to debt exceeds 25% and its debt to EBITDA remains below 3.5x sustainably. Global real GDP growth of 3.2% expected in 2022 (after expanding by 6.1% in 2021), followed by an expected growth of 2.8% in 2023 and 3.4%
