Mercedes 2004 Annual Report Download - page 37

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33
in the credit market and refinanced the third tranche of this
global credit facility earlier than it was necessary. The originally
seven-year tranche with a volume of US $5 billion and a maturity
lasting until July 2006 was transformed into a new facility of
DaimlerChrysler AG with the same volume and a maturity of an
initial five years, i.e. until December 2009. After 12 or 24 months,
with the consent of the banks, this maturity can be extended
by another year until December 2010 or 2011.
DaimlerChrysler’s self-financing strength and the combination
of liquid reserves, short-term and long-term committed credit
lines and the possibility to generate cash inflows through the
securitization of receivables give the Group sufficient flexibility
to cover its refinancing needs at any time.
Rating
On June 14, 2004, Moody’s Investors Service (Moody’s) confirmed
DaimlerChrysler’s short-term rating of P-2 and its long-term
rating of A3 and lifted the outlook from negative to stable. The
improved outlook is based on the assessment by Moody’s that
DaimlerChrysler is well positioned worldwide and that Mercedes-
Benz has a very good market position in the premium segment.
2004 2003
A-2
P-2
F2
R-1-
BBB
A3
BBB+
A-
A-2
P-2
F2
R-1-
BBB
A3
BBB+
A-
Credit rating, short-term
Standard & Poor’s
Moody’s
Fitch
Dominion Bond
Credit rating, long-term
Standard & Poor’s
Moody’s
Fitch
Dominion Bond
Above all, the progress made with the restructuring of the
Chrysler Group, but also in the Commercial Vehicles Division,
caused Fitch Ratings (Fitch) to lift its outlook for DaimlerChrysler’s
long-term rating from stable to positive on June 24, 2004.
At the same time, Fitch confirmed its long-term rating of BBB+
and its short-term rating of F2.
Due in particular to the improvement in the Chrysler Group’s
operating profit, on August 11, 2004, Standard & Poor’s lifted its
outlook for DaimlerChrysler’s long-term rating from negative
to stable. Its long-term rating of BBB and its short-term rating of
A-2 were confirmed.
The Canadian organization Dominion Bond Rating Service did
not alter its long-term rating of A- or its short-term rating of R-1-.