Siemens Energy credit rating: government support as a turning point? Analysis and outlook.

Siemens Energy credit rating: government support as a turning point? Analysis and outlook.

According to a report from Finanztrends.de, Siemens Energy received unpleasant news on Thursday evening. The company's credit rating was rated as unsatisfactory by S&P Global. Despite this negative assessment, Siemens Energy's share price was resilient and even increased by around 1%. However, this price increase should not be overestimated. Market observers point out that when the news became known after 8 p.m., the stock exchange did not have enough time to adjust the price accordingly.

Future developments at Siemens Energy

The credit rating of BBB- is considered questionable on the capital market. This valuation signals that it may be nearly impossible for Siemens Energy to raise capital from large investors, including investors who manage insurance money.

In response, Siemens Energy successfully applied for a guarantee loan from the German state. A guarantee of 15 billion euros was promised. This government commitment should significantly improve the company's situation.

The stock market's reaction to the request for government support was previously very negative. After the announcement, the stock fell by approximately 36% and the following day by a further 27%. The federal government's commitment could therefore mean a positive turn for the future of Siemens Energy. Now the credit rating needs to be updated – either a re-evaluation or maintaining the current status.

It remains to be seen how the share prices will develop in the next few days. Siemens Energy's ability to obtain new loans, or at least avoid being deemed creditworthy, is critical to the company's growth. Market analysts maintain an optimistic view and set the price target for Siemens Energy at around 15.60 euros. This would represent an increase of over 42% compared to the current price and would be a clear signal of positive development for the company.