Mercedes 2015 Annual Report Download - page 91

98 B | COMBINED MANAGEMENT REPORT | LIQUIDITY AND CAPITAL RESOURCES
On February 11, 2015, Moody’s Investors Service (Moody’s)
changed its outlook for Daimler’s A3 long-term rating from
“stable” to “positive.” Moody’s justified this change with the
expectation of a positive sales development in the next 12 to
18 months, which will strengthen our company’s credit profile
in combination with the ongoing efficiency measures. Moody’s
pointed out that the financial profile of the Daimler Group has
improved in recent years on the basis of a successful business
development. The implementation of the positive outlook as an
upgrade of the rating depends on the extent to which Daimler
can sustain its strong operating performance in view of the
heterogeneous development of the world economy.
Standard & Poor’s Ratings Services (S&P) published a report
on Daimler AG on November 27, 2015 in which it affirmed the
corporate long-term credit rating of A- and the stable outlook.
In the terminology of S&P, the rating reflects the satisfactory
business and minimal financial risk profiles. Amongst other
factors, the business risk reflects the cyclical development of
the automotive markets. The financial risk is an indicator of the
Group’s financial strength. In the assessment of S&P, Daimler’s
ongoing positive business development is subject to the risk of
weakening demand for motor vehicles in some markets.
Fitch Ratings (Fitch) also affirmed its long-term issuer default
rating of A- with a stable outlook for Daimler AG. Fitch referred
to the Group’s solid business profile and the strengthening of
key financial metrics. In addition, Fitch praised Daimler’s wide
geographical and product diversification as well as its leading
positions in the markets for premium cars, trucks, vans and
buses. Fitch stated that Daimler enjoys adequate headroom
with its present rating.
The Canadian agency DBRS most recently confirmed the
long-term credit rating of Daimler AG at A (low) with a stable
outlook in November 2015. DBRS pointed out that Daimler’s
business performance had resulted in further improved
profitability. This reflects the product offensive at Mercedes-Benz
Cars as well as the ongoing cost-reduction activities. The
rather favorable market conditions (in aggregate) are regarded
as another driver of the positive sales development. DBRS
referred in particular to the sales successes of Mercedes-Benz
Cars in China and Daimler Trucks in North America.
The short-term credit ratings of all four rating agencies
remained unchanged in 2015.
Credit ratings
In the year 2015, the outlook for the long-term credit rating of
Daimler AG as assessed by Moody’s improved from “stable” to
“positive.” Otherwise, our credit ratings remained unchanged.
Daimler AG therefore has comparable ratings at the level of A-
with all four of the credit-rating agencies it has engaged. The
outlook for the ratings is assessed as “stable” by S&P, Fitch
and DBRS.  B.33
B.33
Credit ratings
End of 2015
End of 2014
Long-term credit rating
Standard & Poor’s A- A-
Moody’s A3 A3
Fitch A- A-
DBRS A (low) A (low)
Short-term credit rating
Standard & Poor’s A-2 A-2
Moody’s P-2 P-2
Fitch F2 F2
DBRS R-1 (low) R-1 (low)