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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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Free AccessCREDIT RATING: Continental (CONGR Baa2/BBB/BBB): S&P Outlook Developing
Our base case remains a neutral scenario, albeit with risks tilted to the downside. S&P notes there is some headroom on credit metrics.
- S&P changes its outlook for Continental from Stable to Developing following the announced potential spinoff of Automotive.
- In line with our previous comments, they see higher margins and higher leverage for the remaining group.
- They outline a neutral scenario where proportional lease and pension liabilities transfer to the SpinCo with no change in financial policy.
- A negative scenario would involve cash balances transferring to the SpinCo without the above liabilities. Elevated transaction costs, change in financial policies, weaker operating performance or further cash injections are cited as potential negative credit drivers.
- A positive scenario sees improved operating performance for Automotive, allowing it to support higher debt.
To read the full story
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.