Bonds News

S&P may cut Siemens ratings after CEO resignation

NEW YORK, April 26 (Reuters) - Standard & Poor's said on Thursday it may cut its ratings for Germany-based Siemens AG SIEGn.DE, citing the resignation of its chief executive, Klaus Kleinfeld.

Kleinfeld said his position had been made untenable by the hesitancy of the Siemens supervisory board in extending his contract until the results of corruption investigations at the German conglomerate become clearer. For details, see [nL26421672].

The resignation “creates uncertainty about Siemens’ strategic and business execution, as well as the company’s future strategic direction and financial policy,” S&P said in a release.

“Any downgrade is likely to be limited to one notch,” said S&P analyst Andreas Zsiga.

Siemens currently holds a “AA-minus” long-term corporate credit rating, the fourth-highest investment grade.

((Reporting by Neil Shah, Editing by Dan Grebler; Reuters Messaging:; E-mail:; Tel: 646-223-6324)) Keywords: SIEMENS RATINGS/S&P

C Reuters 2007. All rights reserved. Republication or redistribution ofReuters content, including by caching, framing or similar means, is expresslyprohibited without the prior written consent of Reuters. Reuters and the Reuterssphere logo are registered trademarks and trademarks of the Reuters group ofcompanies around the world.nN26480254