Moody's: Schaeffler notes Ba3

Moody's Investors Service said it assigned a Ba3 rating, with a loss given default assessment of LGD3 38%, to Schaeffler AG's proposed approximately €1 billion and/or U.S. dollar equivalent senior secured notes.

The B1 corporate family rating and B1-PD probability of default rating are not affected.

The outlook is positive.

Moody's said the rating is supported by Schaeffler's solid business profile evidenced by: (a) Leading market positions in the bearings and automotive component and systems market with number one to three positions across the wide ranging product portfolio in a relatively consolidated industry; (b) its leading mechanical engineering technology platform supporting a competitive cost structure and the development of innovative products; and (c) a well diversified customer base, especially in the Industrial division, but also to the extent possible in the consolidated automotive industry and a sizable aftermarket business which accounts for more than 20% of group revenues.

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