Fitch rates DaimlerChrysler South Africa bond AA+

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

The amount of the issue, designated as DC03, is anticipated at ZAR 2 billion and will be guaranteed unconditionally and irrevocably by DaimlerChrysler AG, Daimler South Africa's ultimate parent in the Federal Republic of Germany. The term of the bond is an expected five years.

Fitch said the final rating is contingent upon receipt of final documents conforming to information already received. The proceeds of the DC03 issue will be used for general corporate purposes and any increase in net debt from this issue is expected to have a minimal effect on DCSA's financial profile.

Fitch said the national rating reflects Daimler's international issuer default ratings of BBB+ and short-term F2. These are based on the group's leading position as a manufacturer in the premium segment of the global automotive market, as well as in commercial vehicles.

The outlook is stable.

© 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.