Mercedes 2012 Annual Report Download - page 104

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3 | Management Report | Liquidity and Capital Resources
Credit ratings
In the year 2012, there was one change in Daimler’s credit
ratings. The upgrade of our issuer rating from BBB+ to A-
by the Standard & Poor’s rating agency in February 2012 means
that since then Daimler has had comparable credit ratings
at the level of A- with all four of the agencies it has engaged.
 3.36
On February 23, 2012, Standard & Poor’s Ratings Services
(S&P) lifted its long-term rating for Daimler AG from BBB+
to A-. At the same time, the short-term rating of A-2 was
confirmed. The outlook was assessed as stable. With these
actions, S&P stated that it was reacting to the significant
improvement in Daimler’s financial risk profile over the previous
two years, whereby S&P already anticipated reduced dyna-
mism in key sales markets during the rest of the year. In view
of the significantly improved financial metrics, S&P assumes
that Daimler will be able to maintain the ratings level it has now
reached also in the case of a mild recession.
In its credit opinions of March 21 and September 21, 2012,
Moody’s Investors Service (Moody’s) affirmed its existing long-
term rating of A3. The outlook, which has been positive since
August 2011, was also confirmed. Moody’s thus recognized the
strong position of Mercedes-Benz in the premium automobile
segment, our worldwide presence and leading market position
for commercial vehicles, and the improvement in the Group’s
profitability and cash flows since 2010. In its credit assessment,
Moody’s also considers the challenges posed for Daimler
and especially for Mercedes-Benz by stricter emission regula-
tions worldwide and the related technology costs and capital
expenditure.
On June 5, 2012, Fitch Ratings (Fitch) also confirmed the
existing long-term issuer rating of A- with a stable outlook, with
reference to our sound financial metrics, our leading position
in relevant markets, and long-term growth prospects for both
cars and commercial vehicles. Fitch is of the opinion that the
business fluctuations typical of the trucks business in connection
with economic cycles are a factor limiting Daimler’s rating
prospects. On the other hand, Daimler Trucks will profit from
the new products launched since the year 2011.
DBRS, the Canadian rating agency, confirmed its long-term
rating for Daimler and its subsidiaries on October 25, 2012
at A (low) with a stable trend. DBRS is of the opinion that with
its current financial profile, Daimler is very well positioned
in that rating category. The agency assumes that the economic
conditions for the car and commercial-vehicle business will
generally continue to develop positively and that Daimler can
participate successfully in that development. The Group’s
current high levels of investment should help to strengthen its
long-term profitability.
The short-term ratings of all four rating agencies remained
unchanged in 2012.
3.36
Credit ratings
End of 2012 End of 2011
Long-term credit ratings
Standard & Poor’s A- BBB+
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)