Moody's Changes its Ratings Outlook on BMW AG from Negative to Stable

Moody's Changes its Ratings Outlook on BMW AG from Negative to Stable

On Friday, the ratings outlook of BMW AG was altered by Moody's Investors Service. They changed it to stable from negative.

No changes have been inflicted on the outlook of Company’s A3 long-term ratings and Prime-2 short-term ratings. The alteration in the outlook is a sign of BMW’S upgrading operating performance. The improved ratings are an outcome of the higher than expected financial performance of the Company in the first half of the current year, as compared to the previous year.

With the Company’s plan to come up with new models of BMW within the next two years, Moody has speculated optimistically on the profits of the Company and its cash flows. The expected performance of BMW is also based upon the Company’s improved cost structure.

BMW’s A3 and P-2 ratings show that it is a manufacturer of a leading brand, which has its strong equity value, especially for the brand BMW. Another important thing depicted by the ratings is the Company’s adherence to Efficient Dynamics strategy to produce automobiles that dampen CO2-emissions. The third factor is its widening product range, variations in models and worldwide presence.

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