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Summary: ThyssenKrupp AG
Standard & Poors, June 2007
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 an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.
The ratings on Germany-based industrial conglomerate ThyssenKrupp AG (TK) reflect its satisfactory business risk profile supported by strong market positions, its diverse portfolio of businesses, and the group's strategic shift in focus toward growth. The ratings also reflect TK's intermediate financial risk profile supported by healthy cash flow generation and a track record of debt reduction. The ratings remain constrained, however, by the cyclical, competitive, and capital-intensive steel, automotive, and capital goods industries. The group also has relatively low profitability in some segments--although profitability is improving overall--and has high pension liabilities. TK continues to perform well. Despite a -480 million European Commission (EC) fine for alleged anticompetitive practices in the elevator division being charged during the period, TK reported income...
Companies mentioned in this report are: ThyssenKrupp AG