...Guaranteed by Daimler AG: Mercedes Benz South Africa Ltd's (MBSA) programme ratings reflect the irrevocable and unconditional guarantees provided by its German parent, Daimler AG (A-/Stable), which owns 100% of MBSA. Large, Leading and Diversified: Daimler AG has wide geographical and business diversification. It has leading positions in the premium passenger-car segment with its Mercedes-Benz and Smart brands (MBC division). Daimler Trucks is the worlds largest heavy- truck manufacturer. It is number one in Europe and North America and the second or third in several other countries/regions, including Brazil and Japan. The group also holds leading positions in the global van and bus markets. Strong Credit Metrics: Funds from operations (FFO) and free cash-flow margins are relatively weak for the rating category as cash from operations (CFO) has been absorbed by increasing capex and generous dividends. However, credit metrics are supported by exceptional cash inflows from business divestments...
