RPT-Fitch Affirms Daimler at 'A-', Outlook Stable
(Repeat for additional subscribers)
May 28 (Reuters) - (The following statement was released by the rating agency)
Fitch Ratings has affirmed Daimler AG's Long-term Issuer Default Ratings (IDR) and senior unsecured notes at 'A-' and Short-term IDR at 'F2'. The Outlook on the Long-term IDRs is Stable. A full list of rating actions is at the end of this release.
The affirmation reflects the group's solid business and financial profile, which remains in line with the ratings according to our Sector Criteria Factors. We also believe that 2014 will be a turn-around point for Daimler with operating margins that dipped to a low in 2013 strongly recovering as a result of a fresh product pipeline in most of the group's divisions, and extensive cost savings programmes of about EUR4bn in the coming two years.
KEY RATING DRIVERS
Large, Leading, Diversified Business
Daimler has wide geographical and business diversification. It has leading positions in the premium passenger-car segment with its Mercedes-Benz and Smart brands (MBC division). Daimler Trucks (DT) is the world's largest heavy-truck manufacturer. It is number one in Europe and North America and ranks second or third in several other countries/regions, including Brazil and Japan. The group also holds leading positions in the global van and bus markets.