Where Is the Opinion of the Rating Agency

Reviews

Moody’s credit ratings for MAHLE GmbH is just below investment grade, Ba1 (LT Corporate Family Ratings, since April 7, 2021). The credit rating is not on Watch, the outlook stable. Recent news could cause this situation to change.

MAHLE and Matthias Arleth (54), Chairman of the Management Board and CEO, have decided to terminate their cooperation by “mutual agreement”, it says so in the press release. This step is due to differing opinions on the future strategic orientation of the group. It seems questionable whether the rating agency was informed of this development in good time.

Arleth had joined the technology group only in January 2022. Until a decision on a successor as CEO has been taken by the Supervisory Board, Michael Frick (55), Deputy Chairman of the Management Board and CFO, is to act as Chairman of the Management Board.

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2 thoughts on “Where Is the Opinion of the Rating Agency

  1. On April 26, 2022 Moody’s Investors Service (“Moody’s”) has changed the outlook on the ratings of German automotive parts supplier MAHLE GmbH (MAHLE) to negative from stable. Concurrently, Moody’s affirmed MAHLE’s Ba1 corporate family rating (CFR), the senior unsecured Ba1 instrument rating, the (P)Ba1 senior unsecured euro medium term note programme rating and a Ba1-PD probability of default rating (PDR).

    “The outlook change reflects the slower than expected recovery of global light vehicle sales and increasing uncertainty regarding macroeconmic growth from the second half of 2022 onwards, which results in weak margins and slightly elevated leverage for MAHLE longer than we expected”, said Matthias Heck, a Moody’s Vice President – Senior Credit Officer and Lead Analyst for MAHLE. “The affirmation considers MAHLE’s strong market position as a leading automotive parts supplier, its conservative financial policy that should support gradual deleveraging and its good liquidity profile”, added Mr. Heck.

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