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European rating agency. Objective, transparent, independent.

Neue ZWL Zahnradwerk Leipzig GmbH (Konzern)

Rating History

Rating Watch Outlook Decision Date Action Validity Date Maximum Validity
B Watch NEW 24.03.2020 25.03.2020 20.01.2021
B Outlook STA 21.01.2020 23.01.2020 20.01.2021
B Outlook POS 23.01.2019 24.01.2019 22.01.2020
B Outlook STA 25.01.2018 26.01.2018 24.01.2019
B Outlook NEG 27.01.2017 30.01.2017 26.01.2018
B Outlook STA 30.09.2016 04.10.2016 27.01.2017
B Watch UNW 29.04.2016 02.05.2016 27.01.2017
B 28.01.2016 01.02.2016 27.01.2017
B+ 30.01.2015 03.02.2015 29.01.2016
BB- 05.02.2014 05.02.2014 04.02.2015

News

  • 25.03.2020
    Creditreform Rating has assigned the SME Issuer Rating of Neue ZWL Zahnradwerk Leipzig GmbH (B) the addition "Watch NEW". As a medium-sized automotive supplier, Neue ZWL Zahnradwerk Leipzig GmbH (NZWL), as the entire automotive industry, is among the industries that are particularly exposed to the negative effects of the COVID 19 pandemic. The emerging negative macroeconomic and industry-specific developments will affect the operating business of NZWL. Especially considering the high level of dependence on the VW Group, which, like most automobile manufacturers, has temporarily stopped production nearly across all areas, a temporary production shutdown of NZWL can be expected. The extent of these adverse effects cannot be adequately estimated at the moment and will depend on the duration and severity of the pandemic, but also on governmental and institutional guidelines and supportive measures.
  • 23.01.2020
    Creditreform Rating has confirmed the SME issuer rating of Neue ZWL Zahnradwerk Leipzig GmbH with B. The outlook was adjusted from positive to stable. The rating is based on the current business development, which in light of the economic slowdown and increasingly challenging market situation in the automotive industry can be considered stable; however, it deviates significantly from the initial expectations. A short to medium-term improvement of the still moderate key financial ratios appears therefore ambitious. We view the NZWL Group's ability to access the capital market, which was demonstrated by the timely repayment of the 2014/2019 bond, the increase of the existing 2018/2024 bond and the new issue of the 2019/2025 bond (exchange offer for the 2015/2021 bond), as positive. The receivables from the affiliated company Neue ZWL Zahnradwerke Leipzig International GmbH (NZWLI) and its Chinese subsidiary Neue ZWL Transmission Technology and Production (Tianjin) Co., Ltd (NZWL TTP) and the related financial and currency risks continue to have a dampening effect on the rating. The expected increase in sales and earnings of the NZWL Group for the current fiscal year remains to be seen in view of the recently reported deviations from projection and the general market development.
  • 24.01.2019
    Creditreform Rating has confirmed the SME issuer rating of Neue ZWL Zahnradwerk Leipzig GmbH at B. The outlook is positive. The rating is based on the slightly improved but still moderate financial ratios. The prolongation of as well as the increase in outstanding amounts towards its affiliated company Neue ZWL Zahnradwerke Leipzig International GmbH (NZWLI) respectively, the Neue ZWL Transmission Technology and Production (Tianjin) Co., Ltd (NZWL TTP) and the related financial and currency risks have a dampening effect on the rating. Due to the current positive business development and strong order situation in Europe and China we believe that this partially offsets the existing risks. The redemption of the bond of EUR 12.5 million that will reach its maturity in March 2019 seems to be secure given the current liquidity situation. We changed the outlook of the rating to positive, due to the fact that NZWL forecasted further increases in revenues and earnings.
  • 26.01.2018
    Creditreform Rating has confirmed the corporate rating of Neue ZWL Zahnradwerk Leipzig GmbH at B. The outlook is stable. The rating is based on the still low level creditworthiness with high indebtedness in relation to the operative earning power. In addition, we have taken into account the risk increasing receivables against the related Neue ZWL Zahnradwerke Leipzig International GmbH (NZWLI) respectively its Chinese subsidiary Neue ZWL Transmission Technology and Production (Tianjin) Co., Ltd (NZWL TTP). The current positive business development of NZWL TTP as well as the early refinancing of an instalment of the first bond due in March 1019 have a stabilizing effect on the rating. Though the revenues of NZWL could be increased in 2017 the earnings performance could not keep pace and remained on a below-average level. The for the next business year predicted improvement of the result remains to be seen.
  • 30.01.2017
    Creditreform Rating has confirmed the corporate rating of Neue ZWL Zahnradwerk Leipzig GmbH at B. The outlook is negative. The assessable business development in 2016, based on figures during the year, has been positive and was in accordance with our expectations. However, Neue ZWL Zahnradwerk Leipzig GmbH has extended its receivables towards Neue ZWL Zahnradwerke Leipzig International GmbH and its Chinese subsidiary Neue ZWL Transmission Technology and Production (Tianjin) Co., Ltd. and thereby expanded its financing functions again in 2016.These factors, in combination with the business development of the affiliated Chinese sister company in 2016, which did not meet our expectation led to the negative outlook. We assume an improvement of the business development of the group in 2017. In addition, we expect a positive result of Neue ZWL Transmission Technology and Production (Tianjin) Co., Ltd. for the first time (which for the first time has achieved a positive result in the 4th quarter of 2016), which we regard as necessary in respect of the foreseeable financial requirements. Those two facts have a stabilizing effect on the rating. On the other hand, exogenic factors could lead to a shortfall of our expected conditional expectations, which has contributed to the negative outlook.