Creditreform Rating has affirmed the unsolicited corporate issuer rating of Schneider Electric SE at A-. Creditreform Rating has also affirmed the unsolicited corporate issue rating of the long-term local currency senior unsecured notes issued by Schneider Electric at A-. These issues are included in the list of ECB-eligible marketable assets, which can be found on the ECB's website. The outlook for the ratings remain. For more details regarding the ratings, please refer to our press release below.
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.
Creditreform Rating has confirmed the rating of the unsolicited corporate issuer rating of Schneider Electric SE (SE) at A- and changed the outlook from stable to negative. This change is based on a significant decrease in revenues and results in H1 2020, predominantly caused by the negative impacts of the COVID-19 pandemic. For the fiscal year 2020, we expect sales and earnings to be significantly lower than originally planned, which could have a negative impact on the rating-relevant key figures. Furthermore, there still remains significant uncertainty regarding the further course of the pandemic and the actual economic consequences. Due to the Company´s strong diversified and partially robust business model as well as its generally sound financial figures, we confirm the rating of SE at A-.
Creditreform Rating has carried out an unsolicited rating of Schneider Electric SE. The rating has been set to A- with stable outlook.