Business News
Continental AG Sees Stable Financing of the Corporation Confirmed by Current Ratings
Monday 13. July 2009 - Standard & Poors gives automotive supplier a 'BBB negative outlook' rating; No effect on VDO financing - no additional costs
Continental AG sees the Corporations sound financing structure confirmed by the current ratings it has received from the leading credit rating agencies. On Thursday, Standard & Poors changed the international automotive supplier’s rating from ‘BBB stable outlook’ to ‘BBB negative outlook’. “This ranking is in line with our expectations and once again affirms the stability of our existing financing package. With this rating, we are absolutely within the scope of our medium and long-term plans”, said Continentals CFO Dr. Alan Hippe. The Standard & Poor’s analysis corresponds to the ‘Baa2 – outlook negative’ rating defined by Moodys at the end of February.
“Standard & Poors change in outlook primarily reflects the difficult market environment for issuing hybrid bonds. Currently, we would only be able to place the hybrid bond planned as part of the VDO acquisition financing arrangements at extremely unfavorable conditions, which is why we have refrained from going ahead so far. Both credit rating agencies, Standard & Poors and Moodys, have now taken account of that fact. However, this has no effect on the stability of our financing, nor on the terms, or costs”, Dr. Hippe emphasized.