Euler Hermes reaffirms Grammer AG’s investment-grade BBB rating
Amberg, June 7, 2018 – Euler Hermes Rating GmbH has reaffirmed its investment-grade BBB rating for Grammer AG in its latest report. As rationale for the favorable rating, the rating agency cites Grammer AG’s strong market position in the Commercial Vehicles Division and the steady improvement in its market position in the Automotive Division. Looking forward over the next 12 months, Euler Hermes therefore expects Grammer’s rating to remain stable.
Euler Hermes goes on to highlight the Grammer Group’s strong global footprint with development and production capacities in the main regions around the world.
It projects moderate medium to long-term global growth in sales of passenger and commercial vehicles, from which Grammer stands to benefit as a supplier of components. The rating agency considers the Company’s diversification across various products, customers and regions to constitute a further strength.
Euler Hermes Rating currently does not see any reason to revise its risk assessment in light of the takeover offer submitted by Jiye Auto Parts GmbH, a company associated with Grammer AG’s strategic partner Ningbo Jifeng in China.
In summary, it still considers the business risk to which Grammer AG is exposed to be slightly elevated. Euler Hermes sees the Company’s financial risk as moderate to low due to its satisfactory earnings potential, the highly satisfactory to good capital structure and gearing as well as its good financial flexibility. In addition, Grammer AG has good structures, processes and systems for addressing operational risks.
Located in Amberg, Germany, Grammer AG specializes in the development and production of components and systems for automotive interiors as well as suspension driver and passenger seats for onroad and offroad vehicles.
In the Automotive Division, we supply headrests, armrests, center console systems and high-quality interior components and operating systems to premium automakers and automotive system suppliers. The Commercial Vehicle Division comprises seats for the truck and offroad seat segments (tractors, construction machinery, forklifts) as well as train and bus seats.
With 13,000 employees, Grammer operates in 19 countries around the world.
Grammer shares are listed in the SDAX and traded on the Frankfurt and Munich stock exchanges via the electronic trading system Xetra.