S&P Global Ratings - Mahle GmbH Ratings Lowered To 'BB-' On Low Earnings Increase; Outlook Stable

• We think that Mahle GmbH (Mahle)’s earnings increase over 2025-2026 will not be enough to support funds from operations (FFO) to debt above 25%, our threshold for the ‘BB’ rating.
• We expect that the transition to e-mobility, combined with restructuring costs, will continue to weigh on the company’s free operating cash flow (FOCF) generation.
• Therefore, we lowered our long-term issuer credit and issue ratings on Mahle to ‘BB-’ from ‘BB’.
• The stable outlook reflects our expectation that cost savings, synergies from the acquisition of the remaining stake in Mahle Behr GmbH & Co. KG, and productivity gains should enable Mahle to achieve an adjusted FFO-to-debt ratio above 20% and return to FOCF to debt well above 2% from 2026. 

Press Release from Standard and Poor’s [PDF; 170 KB]