Fitch rates DaimlerChrysler South Africa bond AA+

Fitch Ratings said it assigned DaimlerChrysler South Africa (Pty) Ltd.'s proposed senior unsecured floating-rate bond issue an expected national rating of AA+(zaf).

The amount of the issue is anticipated at up to ZAR1.5 billion and will be guaranteed unconditionally and irrevocably by DaimlerChrysler AG, the company's ultimate parent. The term of the bond is expected to be 18 months.

Proceeds will be used for general corporate purposes, and the agency said any increase in net debt from this issue is expected to have a minimal effect on the company's financial profile.

The rating is in line with the company's international issuer default rating of BBB+ with a stable outlook and short-term rating of F2. These ratings are based on the group's leading position as a manufacturer in the global automotive market, as well as in commercial vehicles, the agency said.

Fitch said it remains cautious about DaimlerChrysler in the medium term. The agency said it will be monitoring the effect of growing competition and new model launches on the U.S. group.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.