Leading market position in transmission, powertrain, chassis technology, and in active and passive safety components. Favorable long-term growth prospects, underpinned by increasing demands for more fuel efficiency and safety requirements. Good geographic and product diversity, but concentration by customer. However, ZF has long-term business relationships with most of its original equipment manufacturers. Limited ability to improve profit margins in the short term. Exposure to the cyclical and competitive car and light commercial vehicle component market. Stronger leverage metrics and our expectation of further deleveraging. Positive free cash flow generation. Mostly long-term debt maturities Capital-intensive industry. Strong liquidity The positive outlook indicates a one-in-three-possibility that S&P Global Ratings might raise its ratings on automotive supplier ZF Friedrichshafen AG (ZF) by one
