Moody's rates Schaeffler notes B1, Ba2

Moody's Investors Service said it assigned a B1 rating to the proposed senior unsecured notes to be issued by Schaeffler Finance BV due in 2019 and a Ba2 rating to its proposed new senior secured notes due between 2019 and 2022.

Schaeffler's Ba3 corporate family rating, Ba3-PD probability of default rating, as well as the B1 rating of secured debt at Schaeffler Verwaltungs level issued by Schaeffler Holding Finance BV, are not affected.

The outlooks remain stable.

Proceeds from the announced debt issuance will be used to refinance existing debt as well as to finance the payment of the antitrust fine of around €370 million.

The new senior secured notes are secured by pledges over continental shares held by Schaeffler AG, shares of material group companies, cash pool accounts and receivables. These notes will rank pari passu with existing secured debt issued by Schaeffler Finance.

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