Creditreform Rating has upgraded the SME Issuer Rating of Neue ZWL Zahnradwerk Leipzig GmbH from B- to B as part of the update and confirmed a stable outlook.
The main reason for the rating upgrade is that, based on preliminary Group figures, we expect a significant improvement in the earnings situation and improved financial ratios for the past fiscal year 2021. All sites reported positive earnings, which should at least be confirmed in the current fiscal year 2022. The positive business trend is based on a slight improvement in customer diversification, with a successively increasing share of sales from products installed in electrified vehicles. A limiting factor for the rating is that after a satisfactory H1 2021, business momentum had slowed noticeably again in H2 2021, which, after adjusting for one-off earnings effects, resulted in earnings quality that was only convincing to a limited extent, especially in the European part of the Group. On the positive side, we see that NZWL has so far been able to meet its financial obligations in full and on time.