Daimler Truck AG Before the IPO with Solid Ratings

On the way to listing on the Frankfurt Stock Exchange at the end of this year, Daimler Truck approached S&P Global Ratings (S&P) and Moody’s Investor Service (Moody’s) to obtain a rating for the first time. Both rating agencies have today announced solid investment-grade ratings for Daimler Truck. S&P Global Ratings assigned a first-time issuer rating of BBB+ (outlook stable), while Moody’s assigned a first-time issuer rating of A3 (outlook stable).

(Stuttgart) Jochen Goetz, CFO of Daimler Truck AG: “These ratings confirm that Daimler Truck is ready for independence – guided by a clear strategy and with a strong financial profile. This will support both our growth in the financial services sector and our goal of achieving higher margins.”

The BBB+ rating / A-2 (long-term & short-term, provisional) from S&P reflects the agency’s assessment that Daimler Truck has a strong market position in the most profitable markets of the USA and Europe. Furthermore, S&P positively noted that Daimler Truck has an ambitious profitability plan to enhance the robustness of its operational performance during industry downturns and to master the transition to zero-emission vehicles. The final rating is contingent upon the receipt and satisfactory review of the final transaction documents.

Presentation of Strategy and Goals on November 11, 2021

Moody’s A3 rating (long-term, P-2 short-term) for Daimler Truck reflects the considerable size of the group as the world’s largest commercial vehicle manufacturer, its good diversification with seven individual brands, and its leading positions in the US and European markets. Moody’s also pointed to Daimler Truck’s potential to increase its margins through efficiency measures, as well as the company’s conservative financial policy combined with strong liquidity.

Martin Daum, CEO of Daimler Truck, and his executive team will present the future direction and strategic goals of the new company at a Capital Market Day on November 11 at 2:00 PM CET. The initial listing on the Frankfurt Stock Exchange is expected to take place in December 2021.

Photo: © Daimler Truck