Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

 

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

 

Terms of One-Time Website Use

 

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

 

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

 

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

 

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

 

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

Moody's assigns A3 ratings to Daimler's bond issue

10 Oct 2011

New bond issue

Frankfurt am Main, October 10, 2011 -- Moody's Investors Service has today assigned A3 long-term ratings to Daimler AG's ("Daimler") USD3,250 million bond issues.

The bonds were issued by Daimler's wholly owned subsidiary Daimler Finance North America LLC benefiting from an unconditional and irrevocable guarantee of Daimler AG (A3/P-2 with a positive outlook).

SUMMARY OF THE BONDS:

Issuer: Daimler Finance North America LLC

Issue: USD600 million Floating Rate Notes due September 13, 2013

Gaurantor: Daimler AG

Guarantee: unconditionally guaranteed by Daimler AG

Issuer: Daimler Finance North America LLC

Issue: USD800 million 1.875% Notes due September 15, 2014

Gaurantor: Daimler AG

Guarantee: unconditionally guaranteed by Daimler AG

Issuer: Daimler Finance North America LLC

Issue: USD1,100 million 2.625% Notes due September 15, 2016

Gaurantor: Daimler AG

Guarantee: unconditionally guaranteed by Daimler AG

Issuer: Daimler Finance North America LLC

Issue: USD750 million 3.875% Notes due September 15, 2021

Gaurantor: Daimler AG

Guarantee: unconditionally guaranteed by Daimler AG

Assignments:

..Issuer: Daimler Finance North America LLC

....Senior Secured Regular Bond/Debenture, Assigned A3

Moody's Investors Service also maintains the following ratings on Daimler AG and its following affiliates:

Long-Term Issuer Rating (domestic currency) of A3

Senior Unsecured (domestic and foreign currency) ratings of A3

Senior Unsecured MTN (domestic currency) ratings of (P)A3

Commercial Paper (domestic currency) ratings of P-2

Other Short Term (domestic currency) ratings of (P)P-2

BACKED Senior Unsecured (foreign currency) ratings of A3

BACKED Senior Unsecured MTN (domestic and foreign currency) ratings of (P)A3

BACKED Senior Unsecured Shelf (foreign currency) ratings of (P)A3

Daimler International Finance B.V.

BACKED Senior Unsecured (domestic and foreign currency) ratings of A3

BACKED Senior Unsecured MTN (domestic and foreign currency) ratings of (P)A3

Daimler Finance North America LLC

Senior Unsecured (domestic currency) ratings of A3

Senior Unsecured Bank Credit Facility (domestic currency) ratings of A3

BACKED Senior Unsecured (domestic and foreign currency) ratings of A3

BACKED Senior Unsecured MTN (domestic and foreign currency) ratings of (P)A3

BACKED Senior Unsecured Shelf (domestic currency) ratings of (P)A3

BACKED Commercial Paper (domestic currency) ratings of P-2

Daimler UK Finance Plc

BACKED Senior Unsecured MTN (foreign currency) ratings of (P)A3

BACKED Other Short Term (foreign currency) ratings of (P)P-2

Daimler Canada Finance Inc.

BACKED Senior Unsecured (domestic currency) ratings of A3

BACKED Senior Unsecured MTN (domestic and foreign currency) ratings of (P)A3

Commercial Paper (domestic currency) ratings of P-2

BACKED Commercial Paper (domestic currency) ratings of P-2

Mercedes-Benz Australia/Pacific

BACKED Senior Unsecured (domestic and foreign currency) ratings of A3

BACKED Senior Unsecured MTN (foreign currency) ratings of (P)A3

Daimler Coordination Center SCS

Commercial Paper (domestic currency) ratings of P-2

BACKED Senior Unsecured MTN (foreign currency) ratings of (P)A3

BACKED Other Short Term (foreign currency) ratings of (P)P-2

Daimler Japan Ltd.

BACKED Senior Unsecured MTN (foreign currency) ratings of (P)A3

BACKED Other Short Term (foreign currency) ratings of (P)P-2

Mercedes-Benz South Africa (Proprietary) Ltd

NSR BACKED Senior Unsecured (domestic currency) ratings of Aa2.za

NSR BACKED Senior Unsecured MTN (domestic currency) ratings of Aa2.za

NSR BACKED Other Short Term (domestic currency) ratings of P-1.za

Daimler Australia/Pacific Pty. Ltd

BACKED Senior Unsecured MTN (foreign currency) ratings of (P)A3

BACKED Other Short Term (foreign currency) ratings of (P)P-2

RATINGS RATIONALE

"The rating reflects that the planned bond will be unconditional and irrevocably guaranteed by Daimler AG. Consequently, the rating of the bond is at the same level as the parent's senior unsecured issuer rating," says Falk Frey, a Moody's Senior Vice President and lead analyst for Daimler.

Daimler's A3 rating is supported by (i) the company's highly valued Mercedes brand in premium passenger cars; (ii) its well diversified truck business positioning as the global market leader with leading market positions in Europe, North America, South America and Japan as well as the division's growth potential in emerging markets, particularly in Russia together with its local joint venture partner Kamaz; as well as (iii) Daimler's strong market positions in Buses and in the European Van business and (iv) a strong rebound of Daimler's operating performance in 2010 resulting in a substantial reduction of overall indebtedness and leverage measured as debt/ EBITDA.

The rating also takes into consideration (i) the challenge to comply with various emission legislations in most markets in particular the CO2 emission target set by the European Union by 2015 for Mercedes-Benz passenger cars as well as (ii) the costs coming along with the applied technologies and the potential impact on the mix of Daimler's product line, both effects could materially impact future profitability and cash generation on a sustainable basis, (iii) the expectation of moderate free cash flow generation given a higher capex and an increasing dividend which was exceptionally low in 2010.

The positive outlook reflects Daimler's recent improvements in financial metrics to a level that position the company very strongly in the A3 rating category.

An upgrade would require that the company evidences its ability to moderate the volatility of its operating performance as well as continue to deliver very solid results in times of cyclical peaks. Within the next 12 to 18 months and against an environment of increasing macro-economic risk, the company would have to defend its current solid credit profile with minimum metrics as follows: (i) an EBITA margin above 7%, (ii) a sustainable Free Cash Flow generation in the industrial business around 10 % of Debt and (iii) an interest cover above 8x. The company would need to pursue a balanced approach between shareholders' and bondholders' interests and preserve the financial services' conservative policies and profitability. Furthermore an upgrade would require an improved liquidity profile with cash sources covering more comfortable the next 12-15 months cash needs in Moody's stress case scenario on a rolling forward basis.

In the first six months this year Daimler increased its total unit sales of light vehicles, trucks, vans and buses by 10% compared to H1 2010 leading to a 10% increase also in consolidated group revenues to EUR51 billion. Reported Group EBIT was up 40% in the first six months period 2011 versus the same period last year to EUR4.6 billion. The company reported a free cash flow of EUR613 million negatively impacted by EUR1.2 billion cash absorption for working capital needs.

Taking into account the payment of EUR2.0 billion into the German pension fund in H2/2011 -- a generally positive action - Daimler's liquidity is not fully sufficient to cover the next 12 months needs in a theoretical scenario of no access to debt markets for its manufacturing and finance services activities. The company has access to total cash sources of EUR 30.0 billion including EUR9.8 billion cash on balance sheet, EUR0.9 billion short-term marketable debt securities after 20% haircut, EUR1.6 billion from equity stake in EADS after 40% haircut from current market value as well as EUR7.0 billion syndicated credit facility which is fully undrawn. In addition we expect a sizable cash flow generation FFO from the operating business over the next 12 months. In Moody's liquidity scenario Daimler would require total funds of more than EUR30 billion over the next 12 months including capex, debt maturities, working cash for day-to-day operations, the planned EUR2.0 billion payment into the German pension fund as well as dividend payments. Moody's would expect Daimler to improve its liquidity profile over the short term to have a full 12 to 15 months coverage of its future needs with future sources again as in the past.

The last rating action on Daimler was taken on May 24, 2011 when Moody's assigned a provisional Prime-2 short-term rating to Daimler Canada Finance Inc.'s ("DCFI") CAN-$2.5 billion Short-term Promissory Notes Program unconditionally and irrevocably guaranteed by Daimler AG ("Daimler").

The principal methodology used in rating Daimler Finance North America LLC was the Global Automobile Manufacture Industry Methodology published in June 2011. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.

Headquartered in Stuttgart, Germany, Daimler develops, manufactures, distributes and sells a wide range of automotive products, mainly passenger cars, trucks, vans and buses. It also provides financial and other services to its automotive businesses. Daimler's key activities are divided into the following segments: i) Mercedes-Benz Cars ("MBC"); ii) Daimler Trucks; iii) Mercedes-Benz Vans iv) Daimler Buses; and v) Daimler Financial Services. In fiscal year 2010 the group generated revenues of EUR97.8 billion.

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt, this announcement provides relevant regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides relevant regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides relevant regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

The rating has been disclosed to the rated entity or its designated agent(s) and issued with no amendment resulting from that disclosure.

Information sources used to prepare the rating are the following : parties involved in the ratings, public information, and confidential and proprietary Moody's Investors Service information.

Moody's considers the quality of information available on the rated entity, obligation or credit satisfactory for the purposes of issuing a rating.

Moody's adopts all necessary measures so that the information it uses in assigning a rating is of sufficient quality and from sources Moody's considers to be reliable including, when appropriate, independent third-party sources. However, Moody's is not an auditor and cannot in every instance independently verify or validate information received in the rating process.

Moody's Investors Service may have provided Ancillary or Other Permissible Service(s) to the rated entity or its related third parties within the three years preceding the credit rating action. Please see the special report "Ancillary or other permissible services provided to entities rated by MIS's EU credit rating agencies" on the ratings disclosure page on our website www.moodys.com for further information.

Please see Moody's Rating Symbols and Definitions on the Rating Process page on www.moodys.com for further information on the meaning of each rating category and the definition of default and recovery.

Please see ratings tab on the issuer/entity page on www.moodys.com for the last rating action and the rating history.

The date on which some ratings were first released goes back to a time before Moody's ratings were fully digitized and accurate data may not be available. Consequently, Moody's provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see the ratings disclosure page on our website www.moodys.com for further information.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Falk Frey
Senior Vice President
Corporate Finance Group
Moody's Deutschland GmbH
An der Welle 5
Frankfurt am Main 60322
Germany
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Eric de Bodard
MD - Corporate Finance
Corporate Finance Group
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Releasing Office:
Moody's Deutschland GmbH
An der Welle 5
Frankfurt am Main 60322
Germany
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Moody's assigns A3 ratings to Daimler's bond issue
No Related Data.
© 2020 Moody's Corporation, Moody's Investors Service, Inc., Moody's Analytics, Inc. and/or their licensors and affiliates (collectively, "MOODY'S"). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND/OR ITS CREDIT RATINGS AFFILIATES ARE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY'S (COLLECTIVELY, "PUBLICATIONS") MAY INCLUDE SUCH  CURRENT OPINIONS. MOODY'S INVESTORS SERVICE DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY'S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY'S INVESTORS SERVICE CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS ("ASSESSMENTS"), AND  OTHER OPINIONS INCLUDED IN MOODY'S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY'S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY'S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND  PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND  PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY'S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES  ITS PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR  PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT.

MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided "AS IS" without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY'S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing its Publications.

To the extent permitted by law, MOODY'S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY'S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY'S.

To the extent permitted by law, MOODY'S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY'S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY'S IN ANY FORM OR MANNER WHATSOEVER.

Moody's Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody's Corporation ("MCO"), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody's Investors Service, Inc. have, prior to assignment of any credit rating, agreed to pay to Moody's Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and Moody's investors Service also maintain policies and procedures to address the independence of Moody's Investors Service credit ratings and credit rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody's Investors Service and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading "Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy."

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY'S affiliate, Moody's Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody's Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to "wholesale clients" within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY'S that you are, or are accessing the document as a representative of, a "wholesale client" and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to "retail clients" within the meaning of section 761G of the Corporations Act 2001. MOODY'S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. ("MJKK") is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody's Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody's SF Japan K.K. ("MSFJ") is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization ("NRSRO"). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

​​​​​​​​