Announcements

    Drinks

      Scope affirms its issuer rating of A on Germany-based Daimler AG and its financing subsidiaries

      Daimler International Finance BV - EUR 500,000,000 0.000% Bond due March 15, 2019 Mercedes-Benz Australia/Pacific Pty Ltd - AUD 125,000,000 2.875% Bond due March 09, 2020 Daimler AG - GBP 150,000,000 2.750% Bond due December 04, 2020 Daimler AG - EUR 1,250,000,000 0.850% Bond due February 28, 2025 Daimler AG - GBP 450,000,000 1.500% Bond due January 13, 2022 Daimler AG - EUR 110,000,000 1.375% Bond due January 11, 2030 Daimler International Finance BV - EUR 200,000,000 0.326% Bond due January 12, 2019 Daimler Finance North America LLC - USD 750,000,000 3.450% Bond due January 06, 2027 Daimler Finance North America LLC - USD 850,000,000 2.850% Bond due January 06, 2022 Daimler Finance North America LLC - USD 1,000,000,000 2.300% Bond due January 06, 2020 Daimler Finance North America LLC - USD 400,000,000 1.635% Bond due January 06, 2020 DAIG 0.089 08/17/20 FRN MTN DAIG 0.625 03/05/20 MTN DAIG 1.860 06/12/19 MTN DAIG 3.500 06/06/19 MTN DAIG 1.000 11/11/25 MTN DAIG 0.092 03/12/21 FRN MTN DAIG 0.250 05/11/20 MTN DAIG 1.500 02/09/27 MTN DAIG 1.000 12/20/19 MTN DAIG 2.250 01/24/22 MTN DAIG 1.500 07/03/29 MTN DAIG 2.250 12/15/22 MTN DAIG 1.570 05/25/20 DAIG 1.875 07/08/24 MTN DAIG 3.050 05/16/22 MTN DAIG 0.625 02/27/23 MTN DAIG 0.875 01/12/21 MTN DAIG 2.230 12/16/21 DAIG 3.300 08/16/22 MTN DAIG 2.000 09/04/23 MTN DAIG 1.500 08/18/21 MTN DAIG 0.750 05/11/23 MTN DAIG 0.850 11/14/25 MTN DAIG 2.970 03/13/24 MTN DAIG 0.250 05/11/22 MTN DAIG 0.200 09/13/21 MTN DAIG 1.375 05/11/28 MTN DAIG 1.600 10/01/25 MTN DAIG 1.750 01/21/20 MTN DAIG 01/11/23 FRN MTN DAIG 1.356 06/18/20 FRN MTN DAIG 1.875 01/20/20 MTN DAIG 2.375 12/16/21 MTN DAIG 1.000 11/15/27 MTN DAIG 2.000 04/07/20 MTN DAIG 0.875 04/09/24 MTN DAIG 2.125 07/03/37 MTN DAIG 2.000 02/27/31 MTN DAIG 0.092 11/13/20 FRN MTN DAIG 2.375 09/12/22 MTN DAIG 4.500 09/21/21 MTN DAIG 1.875 01/20/21 MTN DAIG 1.780 08/19/19 DAIG 2.000 10/01/20 MTN DAIG 2.125 06/07/22 MTN DAIG 0.500 09/09/19 MTN DAIG 1.750 05/24/22 MTN DAIG 0.250 11/14/22 MTN DAIG 1.800 12/16/19 DAIG 2.300 11/23/20 MTN DAIG 0.290 01/16/20 FRN MTN DAIG 2.375 03/08/23 MTN DAIG 0.292 09/11/19 FRN MTN DAIG 2.000 06/25/21 MTN DAIG 3.780 03/22/22 MTN DAIG 1.500 03/09/26 MTN DAIG 0.191 06/24/19 FRN MTN DAIG 0.292 11/13/19 FRN MTN DAIG 0.190 04/09/20 FRN MTN DAIG 1.375 06/26/26 MTN DAIG 0.140 07/03/24 FRN MTN DAIG 2.290 05/09/22 MTN DAIG 4.800 04/09/21 MTN DAIG 05/11/22 FRN MTN DAIG 1.400 01/12/24 MTN DAIG 2.570 11/22/22 MTN DAIG 0.250 08/09/21 MTN DAIG 1.238 02/22/22 FRN DAIG 1.211 11/05/21 FRN DAIG 2.200 10/30/21 DAIG 3.400 02/22/22 DAIG 2.300 02/12/21 DAIG 1.106 05/04/21 FRN DAIG 2.700 06/14/24 DAIG 2.700 06/14/24 DAIG 3.650 02/22/24 DAIG 3.350 05/04/21 DAIG 1.292 02/15/22 FRN DAIG 1.750 03/10/23 DAIG 1.238 02/22/22 FRN DAIG 1.396 05/04/23 FRN DAIG 1.106 05/04/21 FRN DAIG 4.300 02/22/29 DAIG 0.865 02/12/21 FRN DAIG 4.300 02/22/29 DAIG 2.125 03/10/25 DAIG 1.211 11/05/21 FRN DAIG 1.292 02/15/22 FRN DAIG 2.125 03/10/25 DAIG 3.400 02/22/22 DAIG 3.750 11/05/21 DAIG 0.808 02/22/21 FRN DAIG 2.200 10/30/21 DAIG 2.300 02/12/21 DAIG 2.625 03/10/30 DAIG 3.000 02/22/21 DAIG 3.700 05/04/23 DAIG 3.000 02/22/21 DAIG 3.750 11/05/21 DAIG 2.850 01/06/22 DAIG 3.350 02/22/23 DAIG 3.700 05/04/23 DAIG 2.625 03/10/30 DAIG 2.550 08/15/22 DAIG 3.100 08/15/29 DAIG 3.750 02/22/28 DAIG 1.750 03/10/23 DAIG 2.550 08/15/22 DAIG 3.750 02/22/28 DAIG 1.396 05/04/23 FRN DAIG 3.650 02/22/24 DAIG 0.808 02/22/21 FRN DAIG 0.865 02/12/21 FRN DAIG 3.350 02/22/23 DAIG 3.350 05/04/21 DAIG 3.100 08/15/29 DAIG 3.450 01/06/27 DAIG 0.404 11/12/21 FRN MTN DAIG 2.625 11/24/20 MTN DAIG 1.625 11/11/22 MTN DAIG 2.625 06/23/20 MTN DAIG 0.015 08/28/20 MTN DAIG 2.625 01/18/21 MTN DAIG 2.750 03/15/21 MTN DAIG 0.177 08/30/21 FRN MTN DAIG 2.500 03/20/22 MTN DAIG 1.625 08/30/22 MTN DAIG 0.375 11/08/26 MTN DAIG 02/08/24 MTN DAIG 1.125 08/08/34 MTN DAIG 1.125 11/06/31 MTN DAIG 0.750 02/08/30 MTN DAIG 2.625 04/07/25 MTN DAIG 2.540 08/21/23 MTN DAIG 3.250 04/16/24 MTN DAIG 0.677 09/06/22 FRN MTN DAIG 2.250 11/07/22 MTN DAIG 2.270 11/12/24 MTN DAIG 2.000 09/11/23 MTN DAIG 1.250 09/05/22 MTN DAIG 0.250 11/06/23 MTN DAIG 0.625 05/06/27 MTN DAIG 1.625 11/11/24 MTN
      THURSDAY, 14/06/2018 - Scope Ratings GmbH
      Download PDF

      Scope affirms its issuer rating of A on Germany-based Daimler AG and its financing subsidiaries

      The short-term rating is S-1. The outlook is Stable. The senior unsecured debt issued by either Daimler AG or its financing subsidiaries is rated A.

      Rating rationale

      The corporate rating of A reflects the company’s track record and Scope’s expectation for a continuation of the strong market positions held by the group’s key divisions, Mercedes-Benz Cars and Daimler Trucks. Daimler’s geographic diversification, with a strong presence in both mature and developing markets, and the added diversification benefit from the captive finance business (Daimler Financial Services), is a further support for Scope’s business risk assessment. Limiting factors for the business risk assessment are the pronounced risk for negative cyclical volume changes, notably in the truck division; high capital requirements and investments in R&D to expand the product portfolio; and the technological changes currently influencing the automotive industry.

      Automakers currently benefit from a favourable macro environment, which is showcased by low gasoline prices supporting volume sales of very profitable SUVs, low interest rates including availability of credit, a weakened euro, high demand for automobiles in China, positive consumer sentiment, and rebounding southern European markets. Daimler has likewise benefited from these developments over the past few years, in addition to positive effects resulting from new and successful car models. Consequently, Daimler’s financial risk profile is very strong and the key support for the A rating.

      Daimler has limited financial indebtedness in its industrial business and considerable unrestricted liquidity. The group’s unrestricted and available liquidity (including marketable securities) exceeds financial debt in the industrial business as well as Scope’s debt-adjustments. Therefore, the Scope-adjusted debt figure is negative. The net cash position ultimately results in strong credit ratios, and the key credit ratios that Scope considers important for the assessment of automakers, i.e. Scope-adjusted debt/EBITDA and funds from operations/Scope-adjusted debt are both negative.

      Scope’s positive view on the financial risk profile is supplemented by the supportive liquidity position of the group. Going forward, Scope expects the free operating cash flow in the industrial business to cover forecasted dividend payments. Therefore, Scope-adjusted debt should remain negative, i.e. available unrestricted liquidity should continue to exceed financial debt and debt-like adjustments.

      Senior unsecured debt issued by Daimler AG, ratings assigned to financing companies, and debt issued by financing companies

      Scope has assigned an A rating to senior unsecured debt issued by Daimler AG. This rating is likewise assigned to the financing subsidiaries of Daimler that issue under its Euro Medium Term Note Programme (EMTN). These financing subsidiaries are:

      • Daimler International Finance B.V.
      • Daimler Canada Finance Inc.
      • Daimler Finance North America LLC
      • Mercedes-Benz Japan Co., Ltd.
      • Mercedes-Benz Australia/Pacific Pty. Ltd.

      Senior unsecured debt issuances under the EMTN made by the above subsidiaries are unconditionally and irrevocably guaranteed by Daimler AG.

      Key Rating Drivers

      Positive

      • Mercedes-Benz is a leading premium car manufacturer, with one of the strongest brands for premium cars worldwide
      • Track record of successful product launches, facelifts, and extension of the product range at Mercedes-Benz Cars
      • Broad geographic reach in its key divisions, Mercedes-Benz Cars and Daimler Trucks
      • Broad regional distribution of sales across both mature and emerging-market regions
      • Diversification benefits from captive finance operations, adding a source of operating profits outside manufacturing
      • Strong financial risk profile providing a buffer for unexpected negative operating performance and substantial financial flexibility

      Negative

      • Strong risks of negative cyclical volume changes that may result from worsening consumer sentiment or less favourable economic environment
      • Substantial investment required to develop hybrid and electric vehicles and to meet increasingly stringent emission standards
      • Technological changes in the automotive industry that may change the competitive landscape
      • Strong earnings risks in the commercial vehicle sector given the early-cycle nature of this industry

      Positive rating-change drivers

      • Continuation of strong financial position leading to headroom that may accommodate seriously negative volume developments at Mercedes-Benz Cars and Daimler Trucks
      • Substantial technological advancements at Mercedes-Benz Cars, suggesting a technological lead for electrified vehicles

      Negative rating-change drivers

      • Deterioration of operating performance such as sustained market share losses in key markets (Europe/US) in either the passenger or truck division
      • Change in financial policy towards higher shareholder remuneration, including share buybacks or larger-sized acquisitions - risks that we currently evaluate as being low
      • Weakening of the liquidity position, including limitations to access public debt markets

      Outlook

      The Outlook is Stable and incorporates Scope’s expectation that Daimler should keep a strong financial risk profile. The rating case suggests that free operating cash flow generated in the industrial business is sufficient to cover projected dividend payments. Therefore, Scope-adjusted debt will very likely remain negative with no meaningful incremental financial debt in the industrial business, if any.

      Scope would consider a negative rating action if free operating cash flow in the group’s industrial business turned negative, triggered by an unexpected decrease in operating profits (EBITDA) owing to a substantially lower unit-sales volume in the key car and truck divisions. In line with its perception of Daimler’s financial policy, Scope does not expect material changes to shareholder remuneration or any sizeable acquisitions. The ratings could be negatively impacted if Daimler’s financial policy became more aggressive, for example, engaging in a large acquisition funded by cash and debt. However, Scope does not view this as a likely scenario.

      Scope would consider a positive rating action if Daimler was to continue its track record of a cautious financial policy including moderate dividend payouts, substantial liquidity, and strong credit metrics coupled with an improvement of the adjusted EBITDA-margin to levels above 12%.

      For the detailed rating report, click here.

      Stress testing & cash flow analysis
      No stress testing was performed. Scope performed its standard cash flow forecasting for the company.

      Methodology
      The methodologies used for this rating(s) and/or rating outlook(s) Corporate Rating Methodology and Automotive and Commercial Vehicle Manufacturers Methodology are available on www.scoperatings.com.
      Historical default rates of Scope Ratings can be viewed in the rating performance report on https://www.scoperatings.com/#governance-and-policies/regulatory-ESMA Please also refer to the central platform (CEREP) of the European Securities and Markets Authority (ESMA): http://cerep.esma.europa.eu/cerep-web/statistics/defaults.xhtml. A comprehensive clarification of Scope’s definition of default as well as definitions of rating notations can be found in Scope’s public credit rating methodologies on www.scoperatings.com.
      The rating outlook indicates the most likely direction of the rating if the rating were to change within the next 12 to 18 months.

      Solicitation, key sources and quality of information
      The rated entity and/or its agents participated in the rating process. The following substantially material sources of information were used to prepare the credit rating: public domain, the rated entity, third parties and Scope internal sources.
      Scope considers the quality of information available to Scope on the rated entity or instrument to be satisfactory. The information and data supporting Scope’s ratings originate from sources Scope considers to be reliable and accurate. Scope does not, however, independently verify the reliability and accuracy of the information and data.
      Prior to publication, the rated entity was given the opportunity to review the rating and/or outlook and the principal grounds on which the credit rating and/or outlook is based. Following that review, the rating was not amended before being issued.

      Regulatory Disclosures
      This credit rating and/or rating outlook is issued by Scope Ratings GmbH.
      Lead analyst: Werner Stäblein, Executive Director
      Person responsible for approval of the rating: Olaf Tölke, Managing Director
      The ratings/outlooks were first released by Scope on 27.04.2017

      Potential conflicts
      Please see www.scoperatings.com. for a list of potential conflicts of interest related to the issuance of credit ratings.

      Conditions of use / exclusion of liability
      © 2018 Scope SE & Co. KGaA and all its subsidiaries including Scope Ratings GmbH, Scope Analysis GmbH, Scope Investor Services GmbH and Scope Risk Solutions GmbH (collectively, Scope). All rights reserved. The information and data supporting Scope’s ratings, rating reports, rating opinions and related research and credit opinions originate from sources Scope considers to be reliable and accurate. Scope does not, however, independently verify the reliability and accuracy of the information and data. Scope’s ratings, rating reports, rating opinions, or related research and credit opinions are provided ‘as is’ without any representation or warranty of any kind. In no circumstance shall Scope or its directors, officers, employees and other representatives be liable to any party for any direct, indirect, incidental or other damages, expenses of any kind, or losses arising from any use of Scope’s ratings, rating reports, rating opinions, related research or credit opinions. Ratings and other related credit opinions issued by Scope are, and have to be viewed by any party as, opinions on relative credit risk and not a statement of fact or recommendation to purchase, hold or sell securities. Past performance does not necessarily predict future results. Any report issued by Scope is not a prospectus or similar document related to a debt security or issuing entity. Scope issues credit ratings and related research and opinions with the understanding and expectation that parties using them will assess independently the suitability of each security for investment or transaction purposes. Scope’s credit ratings address relative credit risk, they do not address other risks such as market, liquidity, legal, or volatility. The information and data included herein is protected by copyright and other laws. To reproduce, transmit, transfer, disseminate, translate, resell, or store for subsequent use for any such purpose the information and data contained herein, contact Scope Ratings GmbH at Lennéstrasse 5 D-10785 Berlin.

      Scope Ratings GmbH, Lennéstrasse 5, 10785 Berlin, District Court for Berlin (Charlottenburg) HRB 192993 B, Managing Director: Torsten Hinrichs. 

      Daimler International Finance BV - EUR 500,000,000 0.000% Bond due March 15, 2019 Mercedes-Benz Australia/Pacific Pty Ltd - AUD 125,000,000 2.875% Bond due March 09, 2020 Daimler AG - GBP 150,000,000 2.750% Bond due December 04, 2020 Daimler AG - EUR 1,250,000,000 0.850% Bond due February 28, 2025 Daimler AG - GBP 450,000,000 1.500% Bond due January 13, 2022 Daimler AG - EUR 110,000,000 1.375% Bond due January 11, 2030 Daimler International Finance BV - EUR 200,000,000 0.326% Bond due January 12, 2019 Daimler Finance North America LLC - USD 750,000,000 3.450% Bond due January 06, 2027 Daimler Finance North America LLC - USD 850,000,000 2.850% Bond due January 06, 2022 Daimler Finance North America LLC - USD 1,000,000,000 2.300% Bond due January 06, 2020 Daimler Finance North America LLC - USD 400,000,000 1.635% Bond due January 06, 2020 DAIG 0.089 08/17/20 FRN MTN DAIG 0.625 03/05/20 MTN DAIG 1.860 06/12/19 MTN DAIG 3.500 06/06/19 MTN DAIG 1.000 11/11/25 MTN DAIG 0.092 03/12/21 FRN MTN DAIG 0.250 05/11/20 MTN DAIG 1.500 02/09/27 MTN DAIG 1.000 12/20/19 MTN DAIG 2.250 01/24/22 MTN DAIG 1.500 07/03/29 MTN DAIG 2.250 12/15/22 MTN DAIG 1.570 05/25/20 DAIG 1.875 07/08/24 MTN DAIG 3.050 05/16/22 MTN DAIG 0.625 02/27/23 MTN DAIG 0.875 01/12/21 MTN DAIG 2.230 12/16/21 DAIG 3.300 08/16/22 MTN DAIG 2.000 09/04/23 MTN DAIG 1.500 08/18/21 MTN DAIG 0.750 05/11/23 MTN DAIG 0.850 11/14/25 MTN DAIG 2.970 03/13/24 MTN DAIG 0.250 05/11/22 MTN DAIG 0.200 09/13/21 MTN DAIG 1.375 05/11/28 MTN DAIG 1.600 10/01/25 MTN DAIG 1.750 01/21/20 MTN DAIG 01/11/23 FRN MTN DAIG 1.356 06/18/20 FRN MTN DAIG 1.875 01/20/20 MTN DAIG 2.375 12/16/21 MTN DAIG 1.000 11/15/27 MTN DAIG 2.000 04/07/20 MTN DAIG 0.875 04/09/24 MTN DAIG 2.125 07/03/37 MTN DAIG 2.000 02/27/31 MTN DAIG 0.092 11/13/20 FRN MTN DAIG 2.375 09/12/22 MTN DAIG 4.500 09/21/21 MTN DAIG 1.875 01/20/21 MTN DAIG 1.780 08/19/19 DAIG 2.000 10/01/20 MTN DAIG 2.125 06/07/22 MTN DAIG 0.500 09/09/19 MTN DAIG 1.750 05/24/22 MTN DAIG 0.250 11/14/22 MTN DAIG 1.800 12/16/19 DAIG 2.300 11/23/20 MTN DAIG 0.290 01/16/20 FRN MTN DAIG 2.375 03/08/23 MTN DAIG 0.292 09/11/19 FRN MTN DAIG 2.000 06/25/21 MTN DAIG 3.780 03/22/22 MTN DAIG 1.500 03/09/26 MTN DAIG 0.191 06/24/19 FRN MTN DAIG 0.292 11/13/19 FRN MTN DAIG 0.190 04/09/20 FRN MTN DAIG 1.375 06/26/26 MTN DAIG 0.140 07/03/24 FRN MTN DAIG 2.290 05/09/22 MTN DAIG 4.800 04/09/21 MTN DAIG 05/11/22 FRN MTN DAIG 1.400 01/12/24 MTN DAIG 2.570 11/22/22 MTN DAIG 0.250 08/09/21 MTN DAIG 1.238 02/22/22 FRN DAIG 1.211 11/05/21 FRN DAIG 2.200 10/30/21 DAIG 3.400 02/22/22 DAIG 2.300 02/12/21 DAIG 1.106 05/04/21 FRN DAIG 2.700 06/14/24 DAIG 2.700 06/14/24 DAIG 3.650 02/22/24 DAIG 3.350 05/04/21 DAIG 1.292 02/15/22 FRN DAIG 1.750 03/10/23 DAIG 1.238 02/22/22 FRN DAIG 1.396 05/04/23 FRN DAIG 1.106 05/04/21 FRN DAIG 4.300 02/22/29 DAIG 0.865 02/12/21 FRN DAIG 4.300 02/22/29 DAIG 2.125 03/10/25 DAIG 1.211 11/05/21 FRN DAIG 1.292 02/15/22 FRN DAIG 2.125 03/10/25 DAIG 3.400 02/22/22 DAIG 3.750 11/05/21 DAIG 0.808 02/22/21 FRN DAIG 2.200 10/30/21 DAIG 2.300 02/12/21 DAIG 2.625 03/10/30 DAIG 3.000 02/22/21 DAIG 3.700 05/04/23 DAIG 3.000 02/22/21 DAIG 3.750 11/05/21 DAIG 2.850 01/06/22 DAIG 3.350 02/22/23 DAIG 3.700 05/04/23 DAIG 2.625 03/10/30 DAIG 2.550 08/15/22 DAIG 3.100 08/15/29 DAIG 3.750 02/22/28 DAIG 1.750 03/10/23 DAIG 2.550 08/15/22 DAIG 3.750 02/22/28 DAIG 1.396 05/04/23 FRN DAIG 3.650 02/22/24 DAIG 0.808 02/22/21 FRN DAIG 0.865 02/12/21 FRN DAIG 3.350 02/22/23 DAIG 3.350 05/04/21 DAIG 3.100 08/15/29 DAIG 3.450 01/06/27 DAIG 0.404 11/12/21 FRN MTN DAIG 2.625 11/24/20 MTN DAIG 1.625 11/11/22 MTN DAIG 2.625 06/23/20 MTN DAIG 0.015 08/28/20 MTN DAIG 2.625 01/18/21 MTN DAIG 2.750 03/15/21 MTN DAIG 0.177 08/30/21 FRN MTN DAIG 2.500 03/20/22 MTN DAIG 1.625 08/30/22 MTN DAIG 0.375 11/08/26 MTN DAIG 02/08/24 MTN DAIG 1.125 08/08/34 MTN DAIG 1.125 11/06/31 MTN DAIG 0.750 02/08/30 MTN DAIG 2.625 04/07/25 MTN DAIG 2.540 08/21/23 MTN DAIG 3.250 04/16/24 MTN DAIG 0.677 09/06/22 FRN MTN DAIG 2.250 11/07/22 MTN DAIG 2.270 11/12/24 MTN DAIG 2.000 09/11/23 MTN DAIG 1.250 09/05/22 MTN DAIG 0.250 11/06/23 MTN DAIG 0.625 05/06/27 MTN DAIG 1.625 11/11/24 MTN

      Related news

      Show all
      Scope affirms B/Stable issuer rating on Reneszánsz Kőfaragó Zrt.

      30/9/2024 Rating announcement

      Scope affirms B/Stable issuer rating on Reneszánsz Kőfaragó Zrt.

      Scope assigns a BBB rating to Norwegian Property’s recent senior secured bond issues

      26/9/2024 Rating announcement

      Scope assigns a BBB rating to Norwegian Property’s recent ...

      Scope affirms A- issuer rating on Eviny, revises the Outlook to Stable from Positive

      26/9/2024 Rating announcement

      Scope affirms A- issuer rating on Eviny, revises the Outlook ...

      Scope has updated its analytical report on Magyar Telekom Nyrt.

      24/9/2024 Monitoring note

      Scope has updated its analytical report on Magyar Telekom Nyrt.

      Scope affirms Unix Autó’s issuer rating at BB/Stable

      24/9/2024 Rating announcement

      Scope affirms Unix Autó’s issuer rating at BB/Stable

      Scope downgrades Nitrogénművek to CC and maintains Under Review status for a possible downgrade

      23/9/2024 Rating announcement

      Scope downgrades Nitrogénművek to CC and maintains Under ...