S&P changes view on Continental to negative

S&P changed its outlook for Continental AG to negative from stable.

“The outlook change on Continental's ratings reflects the overall more negative sector environment for European automotive parts suppliers and the resulting pressure on Continental's profit margins and financial metrics,” said Matthias Heck, a Moody's vice president, senior credit officer, and lead analyst for Continental, in a press release.

“A further deterioration of margins, an increase in leverage or a weakening in Continental's liquidity would likely result in a rating downgrade,” Heck said.

Moody’s affirmed Continental’s long-term issuer and senior unsecured ratings of Baa1.

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