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.
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