Euler Hermes Rating affirms SAF-HOLLAND Group's BBB rating with stable outlook

Euler Hermes Rating affirms SAF-HOLLAND Group's BBB rating with stable outlook

Luxembourg, April 13, 2018 - Rating agency Euler Hermes Rating has confirmed its BBB rating of SAF-HOLLAND S.A., Europe's largest independent listed commercial vehicle supplier. Unchanged, the rating agency assessed the Group's credit rating at BBB with stable outlook for the coming twelve months.

Euler Hermes Rating underlines that SAF-HOLLAND holds one of the leading market positions in trailer axle and suspension systems in the EMEA/I region as well as pertaining to fifth-wheels and suspensions in the Americas region. The rationale behind the rating confirmation provided by Euler Hermes Rating reflects the existing positive growth perspective caused by the increase in global transportation volume. Moreover the SAF-HOLLAND Group features an overall excellent market position in its core markets Europe and North America. The assessment also reflects the agency's view that the group is able to counter the unchanged slightly elevated business risk from cyclical fluctuations in the commercial vehicle markets at least partially as a result of the increasing relevance of its higher margin and cyclically more stable aftermarket business and its consistent product innovation.

Euler Hermes Rating classifies the SAF-HOLLAND Group's financial risks as small and refers to the stable level with regard to profitability as well as rates of return. Besides the rating agency underscores the fact that the group's capital structure has reached an excellent level in 2017.

According to the rating agency, these ratios are expected to remain stable or improve further in the years ahead taking into account the Group's globalization "Strategy 2020" targets, which to a large extent are geared towards growth in new markets. SAF-HOLLAND Group's self-financing potential is rated high providing the group with excellent financial flexibility. Operational risks are assessed to be adequately handled.