Motherson Sumi Systems receives 'Ba1' corporate facility rating from Moody's

With outlook revised to 'rating under review' from 'negative'

Motherson Sumi Systems announced that Moody's Investors Service, on 27 March 2020 has assigned Ba1 corporate family rating (CFR) to Motherson Sumi Systems. Further, the outlook has been revised to rating under review from negative.

The Rating Rationale disclosed, inter-alia, states that the rapid and widening spread of the coronavirus outbreak, deteriorating global economic outlook, falling oil prices, and asset price declines are creating a severe and extensive credit shock across many sectors, regions and markets. The combined credit effects of these developments are unprecedented. The auto parts supplier sector has been one of the sectors most significantly affected by the shock given its sensitivity to consumer demand and sentiment. More specifically, the weaknesses in Motherson's credit profile, including its exposure to final consumer demand for automobiles, has left it vulnerable to shifts in market sentiment in these unprecedented operating conditions and Motherson remains vulnerable to the outbreak continuing to spread.

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