Moody’s snips Mahle unsecured notes

Moody’s Ratings said it downgraded Mahle GmbH’s senior unsecured instrument rating to Ba3 from Ba2 and the senior unsecured euro medium-term note program rating to (P)Ba3 from (P)Ba2. The outlook changed to stable from negative. The agency also affirmed the company’s Ba2 ratings.

Mahle recently added an unrated €1.2 billion unsecured revolving credit facility maturing in February 2027. The revolver is guaranteed by certain Mahle operating subsidiaries. The senior unsecured notes do not benefit from such a guarantee, which accounts for the downgrade, Moody’s explained.

"The stabilization of the outlook reflects the progress Mahle made in 2023, resulting in profitability and leverage at levels in line with our expectations for the Ba2 rating combined with the expectation of further performance and cash flow improvements going forward," said Matthias Heck, a Moody's vice president, senior credit officer and lead analyst for Mahle, in a press release.

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