Moody's shifts Schaeffler view to positive

Moody's Investors Service said it changed to positive from stable the outlook on Schaeffler AG.

"The outlook change to positive recognizes the faster than anticipated recovery of SAG's operating performance and credit metrics since the coronavirus outbreak last year and its strong results for the first half of 2021," said Goetz Grossmann, a Moody's vice president and lead analyst for SAG, in a press release.

"The positive outlook indicates a likely upgrade of SAG over the next 12-18 months should its credit metrics continue to improve, as we expect, to levels in line with our specified ranges for an investment grade rating and its liquidity remain very strong on a sustainable basis," Grossmann continued. "While we note some headwinds from rising raw material prices, we expect SAG's profitability to be sustained at higher levels than before the pandemic, thanks to a continued automotive market recovery and recently intensified restructuring initiatives."

Concurrently, Moody's affirmed the group's Ba1 corporate family rating, Ba1-PD probability of default rating and its Ba1 senior unsecured rating.

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