After the Departure of the CEO, MAHLE Does Not Dare to Make Any Forecasts

Moody’s could be forced to review the Ba1 credit rating, currently “stable” and “not on watch”.

The automotive supplier MAHLE was able to boost sales and earnings power in 2021 despite difficult conditions but expects growing problems for the global automotive sector. First Covid, then the semiconductor shortage and now the war in Ukraine, combined with massively rising costs – the German group is therefore cautious and is not making any forecasts for the current year.

The company’s lack of ability to make any predictions isn’t good news. This is particularly threatening because the company has not succeeded in finding new appointments to the top management. After a few months in office, the new CEO left. Therefore, the results must be closely controlled. The new situation could be a reason for the credit rating agency to review the existing credit rating and put it on watch. Routine monitoring of the new figures from the annual financial statements is not enough. A closer look at the statements is therefore necessary:

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Published by:

Dr. Oliver Everling

Independent since 1998, he is Managing Director of RATING EVIDENCE GmbH. As visiting professor of Capital University of Economics and Business in Beijing, former chairman of the supervisory board of a rating agency, advisory board member, advisor, member of rating committees, chairman of ISO-TC Rating Services, author or publisher of books and a magazine, Independent Non-Executive Director under EU Regulation on Credit Rating Agencies, he has been or is involved in ratings from a variety of perspectives. Previously, he was for 6 years department director at Dresdner Bank and, until 1993, managing director of the Projektgesellschaft Rating mbH after a doctorate at the banking and stock exchange seminar of the University of Cologne.

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