Moody’s Rating changes outlook on MAHLE to stable, affirms the Ba2 CFR, downgrades senior unsecured notes to Ba3
Moody's Ratings has today affirmed MAHLE GmbH's ("MAHLE" or "the company") long term corporate family rating (CFR) at Ba2 and probability of default rating (PDR) at Ba2-PD.Furthermore, Moody's Ratings downgraded the company's senior unsecured instrument rating to Ba3 from Ba2 and the senior unsecured euro medium term note programme rating to (P)Ba3 from (P)Ba2. The outlook changed to stable from negative.
"The stabilization of the outlook reflects the progress MAHLE made in 2023, resulting in profitability and leverage at levels in line with our expectations for the Ba2 rating combined with the expectation of further performance and cash flow improvements going forward," said Matthias Heck, a Moody's Ratings Vice President – Senior Credit Officer and Lead Analyst for MAHLE. "The downgrade of the senior unsecured instrument ratings is driven by their relatively weaker positioning compared to the new revolving credit facility, which benefits from guarantees of certain operating subsidiaries," added Mr. Heck.