Fitch cuts Daimler Chrysler

Fitch Ratings said it downgraded Daimler Chrysler Financial Services America LLC's issuer default rating to B+ from BB-, its secured first-lien facility to BB+/RR1 from BBB- and secured second-lien facility to BB-/RR3 from BB.

The outlook is negative.

Fitch said the action follows its downgrade of Chrysler LLC's issuer default rating to B on May 7.

The downgrade reflected decline in unit volume and revenue resulting from weak economic conditions, modest share losses and certain strategic initiatives, the agency said.

Fitch said the company's recent operating performance was within expectations but that it believes operating performance will trend lower due to issues with Chrysler and the weaker environment for consumer credit.

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