S&P and Moody's Announce Autoliv Credit Rating
6 June 2000
S&P and Moody's Announce Autoliv Credit RatingSTOCKHOLM, Sweden - The rating agency Standard & Poor's has today for the first time issued corporate credit ratings for Autoliv Inc. Both Standard & Poor's and Moody's have also reaffirmed the ratings of the US commercial paper program. New ratings: Long-term Short-term Outlook Short-term Nordic scale S&P BBB+ A-2 Stable K-1 Affirmed ratings: Subsidiary level: Autoliv ASP Inc's CP program S&P A-2 Moody's P-2 The rationale behind the rating process for Autoliv is to access further financing instruments in the debt capital markets. It increases Autoliv's financial flexibility and is a foundation for a cost efficient financing of the Group in the future. The long-term rating also provides Autoliv with new possibilities to term out part of the debt. Autoliv has mandated a major Swedish bank, SEB, as lead bank for a domestic medium term note program of SEK 4 billion, (approximately USD 440 million), with ABN-AMRO, SEB, and Svenska Handelsbanken as dealers. Autoliv has also mandated another major Swedish bank, Svenska Handelsbanken as lead bank for a domestic commercial paper program of SEK 4 billion with SEB and Svenska Handelsbanken as dealers. Both programs have Euro-options and constitute a good complement source of financing to the USCP program of USD 850 million, which has been in place since 1997. Autoliv expects to launch inaugural issues in the two programs during the latter part of June. Autoliv had a net debt of USD 619 million at March 31, 2000 which corresponds to a net-debt-to-equity of 32%. The net debt has since increased by about 50% as a result of the OEA Inc. acquisition. Autoliv Inc. develops and manufactures automotive safety systems for all major automotive manufacturers in the world. The company has 60 wholly-owned subsidiaries and joint ventures with more than 24,000 employees in 29 vehicle-producing countries. In addition, the company has eight technical centers around the world, including 19 test tracks, more than any other automotive safety supplier. Sales in 1999 amounted to close to US $3.8 billion and net income US $200 million. The company's shares are listed on the New York Stock Exchange , its Swedish Depositary Receipts on the Stockholm Stock Exchange and its stock options on the Chicago Board Options Exchange.