Annual Report 2016

Credit ratings

In the year 2016, the long-term credit rating of Daimler AG as assessed by S&P Global Ratings was upgraded from A- to A.

At the same time, the short-term rating was raised from A-2 to A-1. Our credit ratings with the other agencies remained unchanged in 2016. At the end of the year, Daimler AG had a positive ratings outlook at Moody’s. The outlook with the other three rating agencies that Daimler has engaged was assessed as “stable.” (See B.32)

B.32 Credit ratings

  End of 2016 End of 2015
     
Long-term credit rating    
Standard & Poor’s A A-
Moody’s A21 A3
Fitch A- A-
DBRS A (low) A (low)
     
Short-term credit rating    
Standard & Poor’s A-1 A-2
Moody’s P-11 P-2
Fitch F2 F2
DBRS R-1 (low) R-1 (low)

1 As of February 3, 2017

Moody’s Investors Service (Moody’s) confirmed the existing A3 long-term rating with a positive outlook on August 2, 2016. Moody’s justified that rating with the well-established and highly valued Mercedes-Benz brand for premium cars and the strong global positioning of the truck business.

On February 3, 2017, Moody’s raised its long-term credit rating for Daimler AG from A3 to A2. At the same time, the short-term rating was raised from P-2 to P-1. The outlook was assessed as stable. With this upgrade, Moody’s is recognizing the Daimler Group’s successful and stable business development of recent years, which is also reflected in the strength of our key financial metrics.

In the course of the year, 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 robust credit metrics. In addition, Fitch praised Daimler’s wide geographical and business diversification as well as the improved profitability of the automotive divisions in recent years. At the same time, Fitch stated that the volatility of the trucks business remains a constraint for the Group’s rating.

S&P Global Ratings (S&P) upgraded its long-term rating for Daimler AG from A- to A on November 2. At the same time, the short-term rating was raised from A-2 to A-1. The outlook remained unchanged at “stable.” S&P explained the upgrade with the Group’s stronger competitive position, especially at Mercedes-Benz Cars with its successful launches of new models. At the same time, S&P pointed out that the truck business had weakened due to contracting markets in some regions. The credit rating for Daimler AG is generally based on an unchanged “satisfactory” business risk and a “minimal” financial risk. One of the factors reflected by the business risk is the cyclical development of the automotive markets. The financial risk is an indicator of the Group’s financial strength.

The Canadian agency DBRS most recently confirmed the long-term credit rating for Daimler AG at A (low) with a stable outlook in November 2016. DBRS pointed out that Daimler’s business risk had generally improved on the basis of the ongoing momentum of Mercedes-Benz Cars in the premium segment. At the same time, DBRS noted that Daimler’s credit metrics had softened somewhat through the first three quarters of 2016 due to the higher gross debt levels of the industrial operations.

The short-term credit ratings remained unchanged at Moody’s, Fitch and DBRS in 2016.

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