The Strategist

Moody's keeps negative ratings for Volkswagen, Daimler, BMW


06/03/2020 - 07:14



The international rating agency Moody's Investors Service (Moody's) has retained ratings of German concerns Volkswagen Aktiengesellschaft (VW), Daimler AG and Bayerische Motoren Werke Aktiengesellschaft (BMW), the agency said.



pixabay
pixabay
Long-term issuer ratings of VW and Daimler were kept at “A3”, BMW at “A2”, forecasts for all ratings were negative. The ratings also went out of the list for review with the possibility of downgrade, where they were placed on March 25th.

The agency is confident that by 2022 (for Daimler) and by the end of 2022 (for Volkswagen and BMW), the companies will be able to restore their credit indicators to their respective ratings. At the same time, the concerns may face more serious problems than analysts expect at the moment due to possible increased competition and reduced demand.

In mid-May, the agency worsened its forecast for global car sales in 2020 to fall by 20% amid the novel coronavirus pandemic. Moody's analysts believe that the second and third quarters will show the steepest falls, while a recovery will be noticed in the fourth. In 2021, the agency expects growth by about 11%.

The BMW auto concern specializes in the production of BMW, Mini and Rolls-Royce automobiles, motorcycles, and engines. Volkswagen is the largest car manufacturer in Europe, which unites brands such as Volkswagen, Audi, Skoda, Seat. Daimler is one of the world's largest automakers.

source: bloomberg.com




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