Following the recent affirmation of the BBB- issuer rating and the Outlook upgrade to Positive from Stable, Scope has updated its analytical report on SAF-HOLLAND SE.

The affirmation of SAF-HOLLAND’s BBB- issuer rating is based on the BBB- business risk profile and the upgraded BBB financial risk profile assessments for SAF-HOLLAND. The strongly improving financial risk profile is driving the Positive Outlook, with a noticeable improvement in key credit metrics.

The Outlook revision to Positive from Stable reflects our expectation that leverage, as measured by Scope-adjusted debt/EBITDA, will move below 2x over the forecast period. The Group will be able to withstand weaker market conditions due to its proactive cost measures, flexibility potential, further Haldex-related synergies and a more resilient business model supported by a higher aftermarket share. We anticipate that SAF-HOLLAND will be able to improve its solid financial risk profile and credit metrics even in a less supportive environment over the next 12-18 months.

This monitoring note does not constitute a credit rating action, nor does it indicate the likelihood that Scope will conduct a credit rating action in the short term. On 19 April 2024, Scope affirmed SAF-HOLLAND’s BBB- rating and revised the Outlook to Positive from Stable. Click here for the corresponding rating action release. The latest information on the credit ratings in this monitoring note along with the associated rating history can be found on www.scoperatings.com.

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