Magna International Investments S.A. — Moody’s places Magna’s ratings under review for downgrade

Moody’s Investors Service, (“Moody’s”) placed the ratings of Magna International Inc. (Magna) under review for downgrade including its A3 LT Issuer Rating, (P)A3 Senior Unsecured Shelf rating, and A3 Senior Unsecured Notes rating. More specifically, Magna’s exposure to final consumer demand for light vehicles has left it vulnerable to shifts in market sentiment in these unprecedented operating conditions and Magna remains vulnerable to the outbreak continuing to spread. In its review, Moody’s will consider the i) outbreak’s impact on the manufacturing operations of Magna which has global operations; ii) impact from facility closures and global automotive production declines Magna is experiencing and will experience in the coming quarters; iii) the lingering impact of diminished consumer demand resulting from consumer concerns over contracting coronavirus, and regional government policies restricting consumer movement over coming quarters iv) Magna’s liquidity profile and the resilience in our various stress scenarios; and (v) the impact of governmental action to support corporates and consumers in the companies’ main markets.

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