Mercedes 2013 Annual Report Download - page 94

98
Credit ratings
In 2013, the outlook for the long-term credit rating of Daimler AG
was changed from positive to stable by the rating agency
Moody’s Investors Service. The other rating agencies confirmed
their credit ratings for Daimler during the course of the year.
Daimler AG therefore has comparable credit ratings at the level
of A- with all four of the agencies it has engaged.  C.33
In a publication of February 12, 2013, Standard & Poor’s
Ratings Services (S&P) explained its credit rating for
Daimler AG and thus affirmed our existing long-term corporate
rating of A- and the stable outlook. On November 21, 2013,
S&P once again confirmed its rating for Daimler AG following
the application of revised corporate criteria, which S&P
had published on November 19, 2013.
Fitch Ratings (Fitch) affirmed the existing long-term issuer risk
of Daimler AG of A- with a stable outlook on May 24, 2013.
This assessment was justified by Fitch with the Group’s robust
financial structure and its significant net cash position. With
regard to its financial metrics, Fitch stated that Daimler enjoys
adequate headroom in its current ratings.
On July 11, 2013, Moody’s Investors Service (Moody’s) also
affirmed the existing long-term issuer default rating of A3
for Daimler AG and the subsidiaries rated by Moody’s. At the
same time, the outlook was changed from positive to stable.
Moody’s explained the revised outlook by the fact that Daimler’s
credit metrics had eroded since the previous assessment
of the outlook in August 2011 to a level below what would be
needed to qualify for an upgrade and that a return to a level
that would support a higher rating was not expected within
the next 12 to 18 months. Moody’s stated, however, that
Daimler’s performance had recently been relatively resilient.
The Canadian agency DBRS confirmed its long-term credit
rating for Daimler AG and its related companies at A (low) with
a stable outlook on October 21, 2013. The confirmation
of the ratings is based on the Group’s strong business profile
as a highly established premium automotive manufacturer
as well as the world’s leading truck producer. DBRS stated that
Daimler’s current financial profile is wholly commensurate
with the assigned ratings.
All of the rating agencies assume that the Group’s profitability
will improve in the year 2014 due to the launch of new vehicle
models.
The short-term ratings of all four rating agencies remained
unchanged in 2013.
C.33
Credit ratings
End of 2013
End of 2012
Long-term credit ratings
Standard & Poor’s A- A-
Moody’s A3 A3
Fitch A- A-
DBRS A (low) A (low)
Short-term credit ratings
Standard & Poor’s A-2 A-2
Moody’s P-2 P-2
Fitch F2 F2
DBRS R-1 (low) R-1 (low)