Fitch ups Daimler, Volkswagen

Fitch Ratings said it upgraded Daimler AG and Volkswagen Group's long-term issuer default ratings and senior notes to A- from BBB+ and affirmed the short-term issuer default ratings at F2.

The outlooks are stable.

Daimler and Volkswagen's company-specific traits and financial metrics are well in line with a rating in the A category, the agency said. They both enjoy strong business and geographical diversification, leading positions in their respective markets as well as solid credit metrics backed by a sustained net cash position and sound profitability.

However, the environment remains difficult for auto manufacturers, the agency added.

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