BMW AG has been assigned long-term as well as short-term ratings from the rating agencies Standard & Poor's (S&P) and Moody's.
Credit Ratings
Short-term rating BMW AG has short-term ratings from S&P and Moody's.
In 1992, BMW AG was awarded an A-1+ rating from S&P: the highest short-term rating from that rating agency. As a result of the purchase of the Rover Group in 1994, and the liquidity reduction associated with it, S&P rating changed to A-1. On November 13, 2009, S&P changed the rating from A-1 to A-2 as a result of the downgrade in the long-term rating. The short-term rating from S&P was raised from A-2 to A-1 on April 16, 2012, along with the increase in the long-term rating from A- to A.
In 1999, BMW AG applied for a short-term rating from Moody's rating agency and was awarded a P-1 rating: the best short-term rating from Moody's. On April 3, 2009, because of uncertainty linked to the financial turmoil, Moody’s downgraded BMW AG from P-1 to P-2. The rating was again raised to P-1 with the improvement of the long-term rating from A3 to A2 on July 22, 2011.
Long-term rating Long-term credit ratings have been assigned to BMW AG since 2005.
S&P assigned on November 5, 2008 the rating A/Outlook Stable (previously A+/Outlook Stable). The outlook was modified from stable to negative on February 27, 2009. On November 13, 2009, as a result of macroeconomic conditions and the uncertainty of a recovery in major markets, S&P changed BMW’s rating to A-/Outlook Negative. As a result of the significant rebound in unit sales, profitability, and cash flow generation in 2010, the outlook was raised from Negative to Stable on September 9, 2010. On September 15, 2011, the outlook was raised from stable to positive as a result of the ongoing improvement in profitability and the demand for premium cars. S&P raised the long-term rating from A- (outlook: positive) to A (outlook: stable) on April 16, 2012, as a result of the successful implementation of Strategy Number ONE over the last 4 years and the accompanying high level of profitability.
Moody’s assigned an A-1 rating in September 2005. The rating was lowered to A2 in November 2008 as a result of the financial and economic crisis. On April 3, 2009, Moody’s assigned the rating A3/Outlook Negative (previously A2/Under Review for possible downgrade).
In September 2010, the outlook was raised from negative to stable. The increased outlook was primarily attributable to the higher demand for premium automobiles in 2010, as well as the related improvement in operating earnings and cash flow. On July 22, 2011 Moody’s increased the rating from A3 (stable outlook) to A2 (stable outlook), as a result of the strongly improved rating metrics in 2011 and the expectation of a sustainably higher level of earnings and cash flow generation in future.
With the A and the A2 ratings of S&P and Moody´s respectively, the rating agencies certify BMW AG’s sound solvency position for debt with a maturity of more than one year.
