Rating

Rating agencies assess the creditworthiness of issuers and assign them what is known as a credit rating. The rating agencies talk regularly to the companies they rate to obtain information on their strategy and business planning. This information, together with the agencies’ own quantitative analyses, form the basis for their credit ratings. The ratings published by independent rating agencies help lenders assess the risk inherent in financial instruments. For companies seeking to raise funds in the capital markets by issuing bonds, commercial paper or other debt instruments a rating from two internationally recognised agencies is supportive.

For many years, Bayer has had its creditworthiness assessed by S&P Global Ratings and Moody’s. Bayer targets an investment grade credit rating post-closing of a potential Monsanto transaction and is committed to the single “A” credit rating category over the long-term in order to offer bond investors a reliable and stable investment in a diversified global corporation.

Bayer is currently rated as follows: 

Rating agencyLong-term ratingShort-term rating
S&P Global RatingsA-A-2
Moody'sA3P-2

 

Recently, the rating agencies took the following rating actions:
   
May 20, 2016: S&P Global Ratings placed 'A-/A-2' ratings for Bayer on CreditWatch with negative outlook.
May 24, 2016: Moody’s placed Bayer’s A3/P-2 ratings under review for downgrade.

The rating explicitly reflects an assessment of the potential risk that a company will not be able to meet the payment obligations relating to debt instruments it has issued (interest and repayment of the principal). The better the rating, the lower the risk is considered to be. Since lenders expect to receive higher interest payments in return for exposure to higher risks, a company with a very good credit rating other circumstances being equal can raise debt capital on more favorable terms than one with a lower rating. Each rating comes with an outlook, indicating to investors the direction in which the agency believes the rating might move in the future.

The analysts responsible for Bayer’s credit rating are:

S&P Global RatingsMaxime Puget
Tel +44-20-7176-7239
Email: maxime.puget@spglobal.com
Moody'sFrancois Lauras
Tel +44-20-7772-5454
Email: Francois.Lauras@moodys.com

 

 

Last updated: November 14, 2016 Copyright © Bayer AG