On Oct. 8, 2008, Standard&Poor's Ratings Services revised its outlook on German automotive manufacturer Daimler AG to stable from positive and affirmed the 'A-/A-2' long- and short-term corporate credit ratings on the group. The outlook revision reflects the rapidly weakening state of most global automotive markets, which makes a rating upgrade in the next 12 to 18 months increasingly unlikely. We are unable to see how the global auto industry will fare in 2009. The outlook revision is not specifically related to third-quarter earnings. In view of this environment, Mercedes-Benz Cars' (MBC) ambitious EBIT margin target of 10% in 2010 has become more challenging since the company reduced its full-year 2008 guidance to an EBIT margin of 8%.
