Euler Hermes Rating is reviewing the BBB rating of Grammer AG in light of recent events and puts it on the watchlist with uncertain direction. The review has been initiated by the announcement that, following the majority takeover of Grammer AG by Ningbo Jifeng, the three members of the executive board will exit the company.
All members of the Executive Board have declared their resignation, which will become effective within the next months, based on contractual change-of-control clauses. In the eyes of Euler Hermes Rating the exit of the Executive Board will increase risk for management continuity. However, the analysts also take stabilizing influences such as the unchanged composition of the supervisory board and the recently positive business performance of Grammer AG into account. Besides Euler Hermes Rating considers an orderly internal succession of the Chief Operating Officer still as possible.
Grammer AG of Amberg specialises in developing, manufacturing and selling components and systems for car interiors (Automotive segment) as well as driver and passenger seats for offroad vehicles, trucks and buses (Commercial Vehicles segment). In the 2017 financial year, Grammer generated € 1.8 billion in group revenue with 12,497 employees (average for the year).
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