Moody's: Daimler view to stable

Moody's Investors Service said it changed the outlook on the A3 long-term and Prime-2 (P-2) short-term ratings of Daimler AG and its rated subsidiaries to stable from positive.

Concurrently, Moody's affirmed these ratings.

"We have changed the outlook on Daimler's rating to stable because the group's credit metrics have eroded since 2011 to a level clearly below what would be needed to qualify for an upgrade, as well as to reflect our expectation that within the next 12-18 months it will be unable to return to such metrics that would support a higher rating," senior vice president and lead analyst for European Automotive manufacturers Falk Frey said in a news release.

"While Daimler's performance has been relatively resilient lately and its pipeline of new model launches should help to counterbalance the ongoing challenges in Europe's car market, we believe that the company's financial performance will likely not improve sufficiently within the next 12-18 months," Frey added in the release.

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