Technical issues at Continental's IBS breakes are credit negative, because cost could exceed existing provisions and Continental's reputation could be damaged.
Our credit view of this issuer reflects its large size and scale, modest leverage and good liquidity, constrained by sustained weak profitability in the automotive segment.
Our credit view of Continental reflects its large scale and good liquidity, constrained by its exposure to the cyclical automotive industry and low profitability in the automotive segment.
Our negative outlook reflects the overall difficult environment for automotive suppliers and the challenges for Continental to maintain financial metrics required for the Baa1.