Credit ratings

Daimler’s credit ratings remained unchanged in 2014. 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 all four agencies. (See table B.33)

B.33

Credit ratings    
  End of 2014 End of 2013
     
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)

On December 19, 2014, Moody’s Investors Service (Moody’s) confirmed its long-term credit rating for Daimler AG of A3 with a stable outlook. Moody’s referred to the highly valued premium brand Mercedes-Benz, the positioning of Daimler Trucks as the global market leader in the truck business, the strong positions of Mercedes-Benz Vans and Daimler Buses in their respective market segments, and the credit metrics which place the Group well within its rating category.

On November 27, 2014, Standard & Poor’s Ratings Services (S&P) published a report on Daimler AG in which it confirmed our long-term corporate credit rating at A-as well as the stable outlook. In S&P’s terminology, the rating is the result of a “satisfactory” business risk and a “minimal” financial risk. The business risk is partially a reflection of the Group’s exposure to cyclical demand for cars, trucks and other vehicles. The financial risk profile is supported by the Group’s strong financial metrics.

On July 7, 2014, Fitch Ratings (Fitch) also emphasized Daimler’s wide geographical and product diversification, and confirmed its long-term issuer default rating of A-with a stable outlook. The heavy product pipeline was assessed as having a positive impact on the credit rating. However, high capital expenditure and investment in research and development were regarded as constraining factors. Fitch believes that Daimler enjoys adequate headroom in its ratings with regard to the relevant financial metrics.

The Canadian credit agency DBRS confirmed on October 24, 2014, its long-term rating for Daimler AG at A (low) with a stable trend. DBRS referred to the improved financial performance of Mercedes-Benz Cars and Daimler Trucks reflecting those divisions’ product offensives, as well as the implementation of their cost-reduction activities, which are expected to contribute substantially to expanding the Group’s profit margins in the future.

The short-term credit ratings of all four rating agencies remained unchanged in 2014.