The rating of Gestamp, the Spanish multinational specialising in the design, development and manufacture of metal components for the automotive industry, has been raised one notch today. The rating agency Standard & Poor's has raised Gestamp's corporate rating to "BB" from "BB-". Similarly, Gestamp's bond rating has been raised one notch to "BB+" from "BB".The rating upgrades reflects Gestamp’s solid operating performance and progressive leverage reduction during the challenging market conditions of the last three years.
S&P’s rating action is based in sustained organic growth together with maintaining margin levels as reflected in 2022 full year results, and on the assumption that the Company will continue to outperform the auto market as well as generate strong operating performance as reflected in 2023 guidance.
The credit rating by Standard & Poor’s is a financial indicator to investors and potential investors of debt securities such as bonds to assess the likelihood the debt will be repaid.