Siemens Financial Services, the captive finance arm of
industrial conglomerate Siemens AG, has been assigned a long term
AA credit rating.
The rating, which also includes a short term A-1+ counterparty
credit rating, are in line with the captive’s parent, according to
Standard and Poor’s, the ratings agency, which carried out the
rating.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
According to Robert Shulz, credit analyst at S&P, the
general approach to rating captives is to rate them as the same as
their parent companies, largely because of the symbiotic
relationship that exists between their respective fault risks, and
also because of their business and financial ties.
While S&P’s ratings took into consideration SFS’ close
alliance with Siemens and its sound profitability, it was also
constrained by the company’s limited business and earnings
diversification, and also its strong reliance on intra-group
funding and capital allocation.
Nevertheless, S&P found that SFS has [had a] “very tight
operational and organisational integration into Siemens”.
It added that its assets are of sound quality, its credit
portfolio is “diversified”, its investment in leasing and factoring
is “secured”, and it has “sound profitability”.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
