TEXT-S&P has mixed outlook for global auto sector credit quality
Sept. 18 - Wide variations in the economic health and prospects of regional markets are making for a similarly disparate outlook for global automakers, Standard & Poor's Ratings Services said today in a report titled, "The Global Auto Sector Faces Obstacles And Opportunities As Regional Economic Outlooks Diverge." "Sales are rising in the highly competitive U.S. market, and we expect sales to be up in China this year as well," said Standard & Poor's credit analyst Robert Schulz. "At the same time, Europe's economic woes are contributing to weaker sales and pressure to cut production capacity in the region," he added. Standard & Poor's outlook for credit quality in the auto sector is mixed: almost 40% of our outlooks on the rated global automakers are either positive or negative, reflecting individual companies' geographic concentrations and significant variations in our regional economic outlooks. The rated global automakers are navigating a variety of conditions, including weak or recovering markets and global economic uncertainty. Some have more exposure than their competitors to declining markets or a cost base that they can't easily restructure because of their location. Accordingly, results in 2012 have varied across regions and companies. The article, part of a special report on the auto industry that will run in the Sept. 26 edition of CreditWeek, provides insight into some of the key issues for investors in the global auto industry and answers questions including:
-- What is Standard & Poor's outlook for credit quality in the global auto sector?
-- What are some of the major developments Standard & Poor's is watching?
-- What would it take for Ford and GM to achieve investment-grade ratings?
-- What are the biggest challenges facing the Japanese automakers in their recovery? The report is available to subscribers of RatingsDirect on the Global Credit Portal at www.globalcreditportal.com. If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-7280 or sending an e-mail to email@example.com. Ratings information can also be found on Standard & Poor's public Web site by using the Ratings search box located in the left column at www.standardandpoors.com. Members of the media may request a copy of this report by contacting the media representative provided. Primary Credit Analysts: Robert E Schulz, CFA, New York (1) 212-438-7808;
Eric Tanguy, Paris (33) 1-4420-6715;
firstname.lastname@example.org Media Contact: Mimi Barker, New York (1) 212-438-5054;
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