Moody’s assigns Freudenberg Baa1 Rating

Weinheim. June 11, 2013. Moody’s Investors Service has assigned a Baa1 rating to Freudenberg SE (Societas Europaea). At the same time the rating agency confirmed the Baa1 rating issued to Freudenberg & Co. The Freudenberg Group now has an “Investment grade” credit rating. The outlook is stable. The Freudenberg Group took the decision to transform its corporate structure in 2012. Freudenberg & Co. Kommanditgesellschaft has remained the strategic parent company of the Group. Under the parent company, business operations have been pooled in the holding company, Freudenberg SE. Freudenberg & Co. KG. has been rated by Moodys since 2001.

In assigning its Baa1 rating to both companies, Moodys highlights the broad diversification and balanced portfolio of the Freudenberg Group. The Company’s global presence and market leadership in niche markets, pro-active portfolio management as well as its sound management are all decisive for the positive rating. “Once again our principle of being proactive in those markets where we can achieve a first or second position over the medium term has paid off,” explained Dr. Mohsen Sohi, Speaker of the Board of Management, Freudenberg SE and Speaker of the Management Board, Freudenberg & Co. KG.

Alongside the qualitative aspects, Moodys also rated the Freudenberg Group’s quantitative figures as positive. The rating agency considered the Group’s sound financial profile, strong liquidity position and high equity ratio. In addition Moodys honored the contribution made by the 320 descendants of the Company’s founders. Their shareholder loans have historically proven to be a stable and reliable source of financing to support the Group’s development even during economically difficult periods and are also reflected in the rating, alongside the Freudenberg SE Board of Management’s adherence to a conservative financial policy.