Scope Ratings has today affirmed the BB- Corporate Issuer Credit Rating (CICR) and the BB- instrument rating of Germany-based MITEC Automotive AG (MITEC). Simultaneously, following MITEC’s early repayment of its EUR 25m senior unsecured corporate bond (7.75% 2012/2017), Scope has withdrawn its CICR and instrument rating.

The affirmation of MITEC’s BB- reflects the company’s change in ownership structure, given Jebsen’s 50% stake in MITEC, through a share purchase and a participation in a capital increase. The latter had no immediate impact on its CICR and bond rating as highlighted by Scope in a monitoring note in February 2016. MITEC has no rated debt outstanding following this early full redemption, which was completed on 2 May 2016.

Please refer to the Scope's Corporate Rating Methodology to find out more about the withdrawal of credit ratings, available on its website, www.scoperatings.com.

About MITEC Automotive AG
Founded in 1990 MITEC Automotive AG is a German automotive supplier operating in the field of automobile propulsion technology which aims at reducing noise emissions and vibrations, as well as enhancing efficiency within the powertrain. The product portfolio comprises car parts such as balancer systems, gear wheels and bevel gear sets, along with adjustable oil pumps and camshaft timing devices. The company operates production sites in Germany, China and the USA.


IMPORTANT INFORMATION
Information pursuant to Regulation (EC) No 1060/2009 on credit rating agencies, as amended by Regulations (EU) No. 513/2011 and (EU) No. 462/2013

Responsibility
The party responsible for the dissemination of the financial analysis is Scope Ratings AG, Berlin, District Court for Berlin (Charlottenburg) HRB 161306 B, Executive Board: Torsten Hinrichs (CEO), Dr. Stefan Bund, Dr. Sven Janssen. The rating analysis has been prepared by Timo Schilz, Lead Analyst. Responsible for approving the rating: Olaf Tölke, Committee Chair

Rating history
(Date | Rating action | Rating)
24.08.15 | Affirmation Corporate Bond | BB- Outlook Stable
24.08.15 | Affirmation CICR | BB- Outlook Stable
26.08.14 | Initial Corporate Bond | BB- Outlook Stable
26.08.14 | Initial CICR | BB- Outlook Stable

The rating outlook indicates the most likely direction of the rating if the rating were to change within the next 12 to 18 months. A rating change is, however, not automatically ensured.

Information on interests and conflicts of interest
The rating was prepared independently by Scope Ratings but for a fee based on a mandate of the rated entity.

As at the time of the analysis, neither Scope Ratings AG nor companies affiliated with it hold any interests in the rated entity or in companies directly or indirectly affiliated to it. Likewise, neither the rated entity nor companies directly or indirectly affiliated with it hold any interests in Scope Ratings AG or any companies affiliated to it. Neither the rating agency, the rating analysts who participated in this rating, nor any other persons who participated in the provision of the rating and/or its approval hold, either directly or indirectly, any shares in the rated entity or in third parties affiliated to it. Notwithstanding this, it is permitted for the above-mentioned persons to hold interests through shares in diversified undertakings for collective investment, including managed funds such as pension funds or life insurance companies, pursuant to EU Rating Regulation (EC) No 1060/2009. Neither Scope Ratings nor companies affiliated with it are involved in the brokering or distribution of capital investment products. In principle, there is a possibility that family relationships may exist between the personnel of Scope Ratings and that of the rated entity. However, no persons for whom a conflict of interests could exist due to family relationships or other close relationships will participate in the preparation or approval of a rating.

Key sources of Information for the rating
- Prospectus
- Website of the rated entity
- Annual financial statements
- Valuation reports, other opinions
- Annual reports/semi-annual reports of the rated entity
- Current performance record
- Detailed information provided on request
- Data provided by external data providers
- Interview with the rated entity
- External market reports
- Press reports / other public information

Scope Ratings considers the quality of the available information on the evaluated company to be satisfactory. Scope ensured as far as possible that the sources are reliable before drawing upon them, but did not verify each item of information specified in the sources independently.

Examination of the rating by the rated entity prior to publication
Prior to publication, the rated entity was given the opportunity to examine the rating and the rating drivers, including the principal grounds on which the credit rating or rating outlook is based. The rated entity was subsequently provided with at least one full working day, to point out any factual errors, or to appeal the rating decision and deliver additional material information. Following that examination, the rating was not modified.

Methodology
The methodology applicable for this rating (Corporate Rating Methodology – European Automotive Suppliers) is available on www.scoperatings.com. The historical default rates of Scope Ratings can be viewed on the central platform (CEREP) of the European Securities and Markets Authority (ESMA): http://cerep.esma.europa.eu/cerep-web/statistics/defaults.xhtml. A comprehensive clarification of Scope’s default rating, definitions of rating notations and further information on the analysis components of a rating can be found in the documents on methodologies on the rating agency’s website.

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