International credit rating agency Moody’s has announced that it has completed a periodic review of the ratings of German steelmaker Thyssenkrupp AG.
The B1 rating of Thyssenkrupp AG reflects the group’s weak operating results and deteriorating credit metrics during the fiscal year 2019-20 ending on September 30, 2020, due to weakened demand following the coronavirus, especially from the automotive market. This was offset by the positive effects on liquidity and debt metrics from the sale of the company’s elevator business.
The rating further reflects initiated extensive restructuring across various segments of the group, which entails execution risks, while uncertainty as to achievability of the targeted profitability improvements over the next few years remains high.