Annual Report 2012 - Knorr-Bremse AG.

Report
105
External ratings confirm investment grade status
Since 2000, two external rating agencies have been assessing the activities of the Knorr-Bremse
Group. Both granted Knorr-Bremse investment grade status from the outset, but their ratings have
been progressively raised over the years. Since 2011, Moody’s has rated the Group “A3/Outlook stable”,
while Standard & Poor’s has awarded Knorr-Bremse an “A-/Outlook stable” rating since 2010. Both
agencies confirmed these ratings for 2012 in renewed recognition of Knorr-Bremse’s good strategic
positioning, its strong competitive situation and the positive development of the Group’s business.
Other factors that again proved influential included excellent working capital management and the
conservative financial policy adopted by Knorr-Bremse. In 2012, Knorr-Bremse was again the only
family-owned company in Standard & Poor’s “Global Automotive Suppliers Ranking” to be granted an
“A” rating.
Moody’s and Standard
and Poor’s
again recognize
Knorr-Bremse’s good
strategic positioning,
strong competitive
situation and the
positive development
of its business.
In their rating reports, the two agencies acknowledged in particular the intelligent financial management
and stable cash flow generation at Knorr-Bremse. Based on a very robust financial policy, the
agencies reported, even under what were at times difficult economic conditions the company was
able to further consolidate the liquidity base it put down in 2011.
The Group’s globally-oriented strategy and its product diversification were again underlined by both
rating agencies as particular strengths of Knorr-Bremse and decisive stability factors. The Group’s business
areas are subject to different economic cycles that, in the past, have taken very different courses
in terms of time and from one market to the next and thus represent a significant risk diversification
factor. Added to this there is the Group’s broad-based position, with local subsidiaries in all key regions,
which works to offset regional fluctuations. Another factor viewed as positive is the intensification
of Knorr-Bremse’s presence in growth markets such as India and Russia. In addition, the systematic
expansion of business in the less volatile aftermarket sector in both divisions helped mitigate the
impact of the economic cycles in the OEM sector.