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New Products and Strong Market Shares Drive Creditworthiness of Europe's Carmakers May 02

  • ID: 1710155
  • May 2002
  • Region: Europe
  • Standard & Poors
1 of 3

FEATURED COMPANIES

  • BMW AG
  • Fiat SpA
  • Honda Motor Co. Ltd.
  • Kia Motors Corp.
  • Peugeot S.A.
  • Toyota Motor Corp.
  • MORE

Abstract
European carmakers face a predominantly negative credit outlook in 2002. The historically high sales of the past few years are forecast to dip, further intensifying competition in the world's most fragmented market and placing more pressure on issuers' profitability. That said, those companies that enjoy a strong new product pipeline, as well as benefit from scale, product diversification, and stable market penetration rates are expected to fare better under these tough conditions. Furthermore, a growing number of issuers are expanding their sources of funding to include securitization (see sidebar entitled "Securitization Expands Funding Options" at the end of this article). Credit quality in the European automotive sector in 2001 was characterized by three significant downgrades: The corporate credit ratings on...

Companies mentioned in this report are:
- Ford Motor Co.
- Motors Liquidation Co. (fka General Motors Corp.)
- Renault S.A.
- Nissan Motor Co. Ltd.
- Daimler AG
- Honda Motor Co. Ltd.
- Toyota Motor Corp.
- Fiat SpA
- Peugeot S.A.
- Volkswagen AG
- BMW AG
- Hyundai Motor Co.
- Kia Motors Corp.

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying READ MORE >

Note: Product cover images may vary from those shown
2 of 3

- Ford Motor Co.
- Motors Liquidation Co. (fka General Motors Corp.)
- Renault S.A.
- Nissan Motor Co. Ltd.
- Daimler AG
- Honda Motor Co. Ltd.
- Toyota Motor Corp.
- Fiat SpA
- Peugeot S.A.
- Volkswagen AG
- BMW AG
- Hyundai Motor Co.
- Kia Motors Corp.

Note: Product cover images may vary from those shown
3 of 3
Note: Product cover images may vary from those shown

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