Rating agency Moody’s has downgraded its long-term credit rating on German carmaker BMW to A3 with a negative outlook.
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The analysts decided on the rating cut and bad outlook following a review started in February, Financial Times Deutschland said.
Nevertheless, the current rating still reflects a good liquidity because the downgrade was based on BMW’s plunge in earnings, as well as the slump in demand. There are also risks that the group’s financial circumstances may deteriorate further, due to falling prices, among others.
The re-financing of the group is expected to become more costly in future.
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