Continental AG Sees Stable Financing of the Corporation Confirmed by Current Ratings
- Standard & Poor's gives automotive supplier a 'BBB negative outlook' rating
- No effect on VDO financing - no additional costs
Continental AG sees the Corporation's sound financing structure confirmed by the current ratings it has received from the leading credit rating agencies. On Thursday, Standard & Poor's 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 Continental's CFO Dr. Alan Hippe. The Standard & Poor's analysis corresponds to the 'Baa2 - outlook negative' rating defined by Moody's at the end of February.
"Standard & Poor's 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 & Poor's and Moody's, 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.
Continental Reifen Deutschland GmbH
With targeted annual sales of more than €26.4 billion in 2008, the Continental Corporation is one of the top automotive suppliers worldwide. As a supplier of brake systems, powertrain and chassis systems and components, instrumentation, infotainment solutions, vehicle electronics, tires and engineering elastomers, the company contributes to enhanced driving safety and global climate protection. Continental is also a competent partner in networked automobile communication. The company currently employs approximately 150,000 staff at almost 200 locations in 36 countries.