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Moody's: Daimler outlook positive
Moody's Investors Service said it affirmed the A3 long-term and Prime-2 short-term ratings of Daimler AG and its rated subsidiaries and changed the outlook to positive from stable.
"The outlook change to positive reflects Daimler's stronger and faster than anticipated recovery in operating performance and financial metrics to a level that positions them very strongly in the current rating category," Falk Frey, a Moody's analyst, said in a statement.
Daimler's A3 rating is supported by the company's highly valued Mercedes brand in premium passenger cars, its well diversified truck business positioning as well as the division's growth potential in emerging markets, the agency said.
The rating also considers the challenge to comply with various emission legislations in most markets, the costs of applied technologies and the potential impact on the mix of Daimler's product line, and the expectation of moderate free cash flow generation given a higher capex and an increasing dividend, according to the agency.
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, Moody's noted.
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