Daimler: S&P cuts credit rating
(CercleFinance.com) - S&P Global Ratings on Thursday lowered its credit rating for Daimler, citing weak margins and free cash flow at the German automaker.
S&P has cut its rating on Daimler's long-term issuer credit ratings and senior unsecured debt from "A" to "A-".
The rating agency said there is a possibility that Daimler will be unable to return its EBITDA margin to more than 10% over the next two years.
In addition, in 2021 the company could fail to return automotive free operating cash flow (FOCF) to more than 4 billion dollars, it added.
The ratings remain on negative watch, reflecting the negative outlook the agency has on the auto industry, it said.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
S&P has cut its rating on Daimler's long-term issuer credit ratings and senior unsecured debt from "A" to "A-".
The rating agency said there is a possibility that Daimler will be unable to return its EBITDA margin to more than 10% over the next two years.
In addition, in 2021 the company could fail to return automotive free operating cash flow (FOCF) to more than 4 billion dollars, it added.
The ratings remain on negative watch, reflecting the negative outlook the agency has on the auto industry, it said.
Copyright (c) 2019 CercleFinance.com. All rights reserved.