Summary: KUKA AG Jan 12
Standard & Poors, January 2012
Abstract
The ratings on Germany-based industrial automation and robotics manufacturer KUKA AG reflect Standard & Poor's Ratings Services' view of the company's weak business risk profile and highly leveraged financial risk profile. In our opinion, the ratings are constrained by KUKA's high exposure to the cyclical auto industry and, consequently, its weak and volatile operating margins. Further weaknesses include KUKA's difficult position as a supplier to price-aggressive original equipment manufacturers (OEMs) and its limited geographic, end-market, and customer diversity. These constraints are partly offset by KUKA's strong and leading market positions in its niche markets and longstanding relationships with OEMs, which provide high barriers to entry for competitors. In addition, KUKA benefits from end-market diversity, albeit on a weak level, and...
Companies mentioned in this report are: KUKA AG
Action: Review
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.
KUKA AG
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