Moody's rates Continental notes B1

Moody's Investor Service said it assigned a provisional B1 rating to Continental AG's new senior secured notes issued by Conti-Gummi Finance BV, guaranteed by Continental and certain subsidiaries. The corporate family rating of Continental remains at B1.

The outlook is stable.

The proceeds will be used to refinance part of the outstanding pro-forma debt of €7.1 billion.

Given the seven-year maturity of the notes, a successful issue would further lengthen the uneven debt structure of the company and further reduce the high reliance on bank financing, Moody's said.

The company's short-term liquidity is good, reflecting limited debt maturities for the next 12 months, a sizable cash position and notable availability under its revolving credit facility, the agency said.

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