Standard&Poor's Ratings Services said today that DaimlerChrysler AG's (BBB+/Stale/A-2) disclosure of a substantial increase in its unfunded pension liability does not have any direct impact on its rating or outlook on the company. Based on management's disclosures, Standard&Poor's estimates that because of poor investment portfolio returns, DaimlerChrysler's overall unfunded pension liability could exceed €8 billion at year-end 2002, compared with €3 billion at year-end 2001. Offsetting this adverse development, however, DaimlerChrysler has announced impressive third-quarter results. Management has now indicated that it expects operating earnings (before special items) for full-year 2002 to exceed €5 billion--compared with €1.3 billion in 2001--which is better than previously assumed by Standard&Poor's. Recent strong financial performance lends confidence that
