Credit Quality Dips as Economic Pressures Mount in European Capital Goods May 01
- ID: 2026662
- May 2001
- Region: Europe
- Standard & Poors
Rated companies in the European capital goods sector range from very large and diversified multinationals like Siemens AG (AA/Negative/A-1+), a diversified global conglomerate with annual revenues of $70 billion, to smaller specialized companies such as Leica Geosystems Holdings AG (BB/Stable/--), which manufactures high-precision surveying and optical measurement instruments. Standard & Poor's maintains long-term corporate credit ratings on 22 publicly listed companies in this sector and, with only six exceptions, these credits fall into the investment-grade category (see chart). The generally high ratings level reflects leading global market positions in the companies' respective markets, broad geographic spread outside their domestic and European home markets, and conservative-to-moderate financial profiles. High-yield issuance has been limited so far, but Standard & Poor's expects more...
Companies mentioned in this report are: Siemens AG,TI Group PLC,Legrand France,Schneider Electric S.A.,Leica Geosystems Holdings AG,Invensys PLC,Metso Corp.,Rexel Distribution S.A.,GKN Holdings PLC,Smiths Group PLC,Weigh-Tronix LLC,Cammell Laird Holdings PLC,Alfa Laval AB
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.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
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Siemens AG,TI Group PLC,Legrand France,Schneider Electric S.A.,Leica Geosystems Holdings AG,Invensys PLC,Metso Corp.,Rexel Distribution S.A.,GKN Holdings PLC,Smiths Group PLC,Weigh-Tronix LLC,Cammell Laird Holdings PLC,Alfa Laval AB