BMW 2013 Annual Report Download - page 87

87 COMBINED MANAGEMENT REPORT
Further improvement in rating
In December 2013 the rating agency Standard & Poor’s
raised BMW AG’s long-term rating from A (stable out-
look) to A+ (stable outlook). BMW AG is the only Euro-
pean automobile manufacturer with this high rating.
The short-term rating remained at A-1, also the highest
level for the sector.
Following the change in Standard & Poor’s rating criteria
in November, the BMW Group received particularly
good marks for its financial strength. In terms of finan-
cial
risk, the BMW Group was given the best classifi-
cation
(risk category: minimal) thanks to its ability to
generate strong cash flows, its leading position in the
premium segment and the excellent financial indicators
it enjoys on the automotive side of the business. The
rating agency Moody’s also set the BMW Group on a
pedestal again by giving it the best rating of all Euro-
pean automobile manufacturers, unchanged from the
previous year. Since July 2011, BMW AG’s long-term
and short-term ratings are A2 and P-1 respectively.
These rating assessments underline the BMW Group’s
robust financial profile and excellent creditworthiness.
Thanks to these attributes, it not only has good access
to international capital markets, it also benefits from
attractive refinancing conditions, which are particularly
helpful for the BMW Group’s Financial Services busi-
ness.
Regular communication with capital markets continued
The BMW Group’s investor relations activities again
received high praise in the renowned
Extel Survey con-
ducted by Thomson Reuters and in the specialist pub-
lication
Institutional Investor. Analysts, institutional in-
vestors and rating agencies were kept up to date with
regular quarterly and year-end financial reports. Road-
shows
and numerous one-on-one as well as group dis-
cussions were held, sometimes attended by members of
the Board of Management. This comprehensive com-
munication with relevant capital market participants
was supplemented by specialist socially responsible in-
vestment (SRI) roadshows for investors who wish to
incorporate sustainability criteria in their investment
decisions as well as debt roadshows for capital debt in-
vestors and credit analysts. The Investor Relations team
again handled a great many inquiries from private
in-
vestors regarding BMW stock and bonds during the
period under report. One important focus of communi-
cation in 2013 was on the BMW i brand and particularly
on BMW i3 and BMW i8 vehicles. In addition to the
interest shown in innovation days at the BMW plant in
Leipzig, the test driving event in Amsterdam and show-
room events in London and Paris, BMW i was a subject
of practically all discussions with analysts and investors.