Credit Ratings

With ratings in the A and A2 category respectively Henkel has investment grade credit ratings. Henkel is rated as follows:


 Credit rating

 Standard & Poor’s

 Moody’s

 Long-term

 A flat

 A2

 Outlook

 stable

stable

 Short-term

 A-1

 P1


May/June 2011 - Standard & Poor's and Moody's again increased Henkel's long- and short-term credit ratings. As a result of a continued solid business performance and an improved financial position Henkel has regained its target rating. The outlook is stable.

An overview about the credit rating categories from Standard & Poor’s and Moody’s can be found here.



Henkel Credit Default Swap

A Credit Default Swap (CDS) is a financial instrument for hedging credit risk. By buying a CDS, a market participant hedges certain risks arising from credit relationships in exchange for a premium, which is referred to as a CDS Level. The higher the level, the higher the default risk estimated by the market for the issuer.

The following graph shows the development of Henkel’s five-year CDS compared to the CDS index iTraxx Europe with the same maturity. This index encompasses 125 major European companies. Henkel’s default risk is estimated constantly lower than the average risk of these companies.

(10-day moving average)