oTRATON SE is the leading truckmaker in
oThe company has started an extensive program to use similar powertrain components across the brands, where it is targeting long-term synergies of up to
oFor 2020, given the COVID-19-related recession, we expect break-even or even slightly negative reported operating profit for the industrial business, down from
oWe view the company as a highly strategic subsidiary for its 89.7% owner
oWe are assigning our ‘BBB’ long-term issuer credit rating to TRATON.
oThe stable outlook reflects our expectation that the company will successfully execute its margin and cash flow preservation measures and pursue a conservative financial policy, ensuring adjusted funds from operations (FFO) to debt of about 30% at year-end 2020 and above 60% at year-end 2021.
The rating also reflects our view of the company’s solid combined market shares of its Scania premium brand, MAN, and VWCO brands. TRATON is leading the heavy duty market with a 33% share in