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