Moody’s rates Schaeffler bonds Ba2

Moody's Investors Service said it assigned a Ba2 rating to the proposed senior secured bonds totaling around €1.5 billion issued by Schaeffler Finance BV, with maturities ranging between 2020-2025.

Schaeffler AG's corporate family rating of Ba3 remains unchanged.

The outlook is stable.

Proceeds will be used to refinance two senior secured bonds maturing 2017 totaling roughly €1.3 billion (so called February 2017 bonds), with the remainder related to transaction costs (mostly make-whole premium owing to the early repayment of the February 2017 bonds).

Moody’s said the somewhat higher amount of debt following the transaction is offset by Schaeffler's strong operational performance in 2014, as well as lower interest paid going forward and improved maturity profile. As such, the agency continues to view Schaeffler's corporate family rating as solidly positioned at Ba3.

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