Moody’s assigns Freudenberg Baa1 Rating
Rating validates Freudenberg Group strategy
PLYMOUTH, Mich., June 11, 2013 /PRNewswire/ — Moody’s Investors Service has assigned a Baa1 rating to Freudenberg SE. At the same time, the rating agency confirmed the Baa1 rating issued to Freudenberg & Co. The Freudenberg Group now has an “Investment grade” credit rating. The outlook is stable. The Freudenberg Group took the decision to transform its corporate structure in 2012. Freudenberg & Co. Kommanditgesellschaft has remained the strategic parent company of the Group. Under the parent company, business operations have been pooled in the holding company, Freudenberg SE. Freudenberg & Co. KG. has been rated by Moody’s since 2001.
In assigning its Baa1 rating to both companies, Moody’s highlights the broad diversification and balanced portfolio of the Freudenberg Group. The Company’s global presence and market leadership in niche markets, pro-active portfolio management as well as its sound management are all decisive for the positive rating. “Once again our principle of being proactive in those markets where we can achieve a first or second position over the medium term has paid off,” explained Dr. Mohsen Sohi, Speaker of the Board of Management, Freudenberg SE and Speaker of the Management Board, Freudenberg & Co. KG.
Alongside the qualitative aspects, Moody’s also rated the Freudenberg Group’s quantitative figures as positive. The rating agency considered the Group’s sound financial profile, strong liquidity position and high equity ratio. In addition Moody’s honored the contribution made by the 320 descendants of the Company’s founders. Their shareholder loans have historically proven to be a stable and reliable source of financing to support the Group’s development even during economically difficult periods and are also reflected in the rating, alongside the Freudenberg SE Board of Management’s adherence to a conservative financial policy.
About the Freudenberg Group: The Freudenberg Group is a family company offering its customers technically challenging product solutions and services. The Group develops and manufactures seals, vibration control components, filters, nonwovens, products for surface treatment, release agents and specialty lubricants, medical and mechatronic products. And especially for mid-size companies Freudenberg develops software solutions and IT services. The end-user can find modern Freudenberg household products in the shops under the brand names of vileda®, O-Cedar®, Wettex®, Gala® and SWASH®. The Freudenberg Group employed 37,453 people in 57 countries and generated sales of more than US$ 8.2 billion in 2012.
About Freudenberg in North America: Freudenberg North America Limited Partnership is the North American holding company for Freudenberg & Co. of Weinheim, Germany that owns a family of companies which operate 15 unique businesses at 58 locations in North America. Together, these companies provide innovative products and solutions to customers in industries ranging from automotive, aerospace, and medical to chemical, oil and gas, and construction.
For further information, please visit www.freudenberg.us.
SOURCE Freudenberg Group