Uniwheels Group: Euler Hermes Upgrades Rating to B+, Positive

HAMBURG, Germany, December 13, 2013 /PRNewswire/ --

Euler Hermes Rating upgrades its rating for Rasch Holding Ltd. (Uniwheels Group) from B, stable to B+ positive. The analysts' main rationale for upgrading the rating is the improvement in the company's capital structure, its scope for reducing debt and its greater financial flexibility in 2013.

The Uniwheels Group's sales volumes and earnings improved substantially over the previous year in the first 10 months of 2013. The analysts at Euler Hermes Rating forecast a substantial improvement in operating earnings over the previous year in 2013, underpinned by increased OEM sales volumes. On the other hand, accessory sales have contracted. Financial liabilities have shrunk substantially in the current year following the repayment of loans and the reduced utilisation of credit facilities. Euler Hermes Rating expects to see an improvement in the company's capital structure, its deleveraging potential and its interest coverage ratio to a generally satisfactory level in 2013.

Given the operational risk profile, the rating agency still sees further scope for improvement in the UNIWHEELS Group's debt levels and financial flexibility. In the analysts' view, the operational risk profile is particularly characterised by the company's exposure to automotive production in Europe in the OEM segment and by the heavy seasonality of sales and their dependence on the weather in the accessory segment. In the OEM segment, Euler Hermes sees the UNIWHEELS Group's strengths as including its strong market position as a supplier of factory-fitted wheels in the premium vehicle segment as well as its extensive development skills and flexibility.

Opportunities will arise from the expansion of its market position, the addition of further customers and growing demand for higher-quality wheels. In this connection, rising requirements with respect to size, surfaces and weight will afford possibilities for differentiation. With its ATS, Rial, Alutec and Anzio brands, UNIWHEELS holds a leading Europe-wide position in the accessory market. The rating agency considers the risks to include a macroeconomic slowdown, mounting competition, rising commodity and energy prices as well as exchange rate fluctuations.

Looking forward to 2014, the analysts consider continued growth in the OEM segment and increased demand in the accessory segment to be likely. The rating is expected to improve over the next 12 months.

Euler Hermes Rating Deutschland GmbH is registered as a credit rating agency (CRA) in accordance with Regulation (EC) No. 1060/2009 of the European Parliament and Council and is accredited by BaFin as an external credit assessment institution (ECAI).

Further information on Euler Hermes Rating Deutschland GmbH can be found at http://www.eulerhermes-rating.com.

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SOURCE Euler Hermes Rating Deutschland GmbH