Creditreform Rating has confirmed the corporate SME rating of Neue ZWL Zahnradwerk Leipzig GmbH in the context of its rating update at B- with stable outlook.
The assessment is based on the development of 2020, which was significantly negatively affected by the COVID-19 pandemic and the overall difficult market situation of the automotive industry, which led to unsatisfying results and thus deviated significantly from the original forecasts. The results were however better than forecasted by NZWL in April 2020. The high outstanding debts against the Neue ZWL Zahnradwerke Leipzig International GmbH, or the Neue ZWL Transmission Technology and Production (Tianjin) Co., Ltd respectively continue to have a dampening effect on the rating. Due to the proven market establishment of the NZWL TTP and its positive business development, we consider these risks to be better than in the previous years. The forecasted increase in revenue and EAT for the business year 2021 of the NZWL Group remains to be seen due to the high uncertainty with regard to the pandemic, containment measures of governments as well as industry specific and general economic risks. The one year outlook for the Rating remains stable. This is based on our assessment of the positive business development of the NZWL in the second half of 2020 and in connection with the satisfactory business development of NZWLI or NZWL TTP respectively. There remains a high degree of uncertainty with regard to the pandemic, weakening of the global economy and the ongoing difficulties in the ever-changing industry of NZWL.