26.08.2021
Creditreform Rating AG confirmed the unsolicited corporate issuer rating of Schneider Electric SE at A- and changed the outlook to stable from negative. The rating result reflects the Company´s strong global market position, good product and geographical diversification, technological know-how, and overall positive prospects in view of the growing trend in electrification and energy efficiency, sustainability and digitization. In 2020, the Group posted somewhat weaker annual results compared to the previous year, mainly driven by temporary impacts of the COVID-19 pandemic and the lower investments levels during economic downturns. Even though, we consider the company's business model as rather resilient in the long run as a result of management execution capabilities, strategic M&A acquisitions, strengthening of product portfolio, the expansion of digital services and software solutions and, last but not least, due to the increased demand for technological solutions. Hence, we have seen already a fast-paced recovery during first half year (HY) 2021, with operating performance being even stronger than in pre-pandemic periods. The Company´s financing structure and liquidity position remain solid and commensurate to its current rating level. Constraining the rating is the increase in financial debt since beginning 2020 and the Company´s relatively aggressive shareholder remuneration, as evidenced by its progressive distribution policy and recurring share buyback programs.