Strong margins compared with other auto suppliers and bearings manufacturers. Leading market positions and recognized technological leadership. Favorable long-term growth prospects, supported notably by the drive for lower carbon emissions. Good geographic, product, and end-market diversity. Exposure to the cyclical and highly competitive auto industry and industrial bearings markets. High debt burden at group level, but further deleveraging is likely. Capital-intensive nature of the business. Long-dated debt maturity profile. Adequate liquidity. The stable outlook on Germany-based Schaeffler AG, manufacturer of automotive components and systems and supplier to various industry sectors, reflects S&P Global Ratings' opinion that the group will maintain strong operating performance in 2016-2017, including an adjusted EBITDA margin of approximately 18%. We view an adjusted funds from operations
