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27. Apr 2017 Company news

Scope Ratings assigned first-time rating for Daimler AG

The European credit rating agency Scope Ratings has expanded its coverage to six companies listed in Germany’s leading index, the DAX. The first-time rating of the large automobile group Daimler AG strengthens Scope’s presence in another important sector.

Earlier today, the leading European rating agency Scope assigned a first-time rating for Daimler AG. The worldwide provider of premium passenger cars and commercial vehicles, headquartered in Stuttgart, is rated at A. The Outlook for the rating is Stable.

Daimler is one of the largest bond issuers among European industrial groups and is active in all leading international financial markets. At the end of 2016, Daimler Group companies had outstanding bonds with a volume of EUR 63.1bn, the overwhelming majority of which are used for sales financing. The group issues in all major international currencies.

"With Daimler, we were able to convince another global industrial heavyweight of our rating approach. This underlines the added value that Scope’s methodology offers to issuers and investors”, says Torsten Hinrichs, CEO of Scope Ratings AG.

In addition to Daimler, Scope's DAX portfolio already comprises Linde, BASF, Merck, Lufthansa, and Commerzbank. Scope also rates leading European banks such as UBS, Crédit Foncier, and KfW, and has been mandated by important issuers in the structured finance sector such as Banco Santander, BBVA, and Barclays, among others. This success is based on large investments in the expansion of its analytical teams and the opening of offices in all key European markets. With about 135 employees from more than 20 countries, Scope is the largest European rating agency and the only one to offer ratings in all important sectors across Europe.

Daimler's A rating is justified by its position as a market leader, above all in the passenger and commercial vehicle segments, as well as its strong financial risk profile and the group's substantial financial flexibility, among other factors. The rating is also supported by the group's extensive geographical diversification by country and product as well as by the financial services business. A primary limitation on the rating results from the high cyclical risk experienced by the commercial vehicle business in particular, due to the high investment required for research and development. Technological risk currently faced by the automotive industry is another limiting factor.  

The full rating report, including rating rationale, analytical details, and regulatory disclosures, is available at www.scoperatings.com or here.  

Contact

Scope SE & Co. KGaA    Phone: +49 30 27891-0
Werner Stäblein    w.staeblein@scoperatings.com
Oliver Müller    press@scopegroup.com