On Oct. 21, 2003, Standard&Poor's Ratings Services lowered its long-term corporate credit ratings on DaimlerChrysler AG (DaimlerChrysler) and related entities to 'BBB' from 'BBB+'. This reflects concerns about the increasingly clouded prospects of the Chrysler Group amid intensifying competition in the North American auto market. At the same time, the 'A-2' short-term ratings were affirmed. The outlook is negative. Although DaimlerChrysler continues to be well positioned in the global luxury and commercial vehicle markets, the risks posed by Chrysler have a significant effect on the overall credit profile of DaimlerChrysler. Following its return to profitability in 2002, aided by extensive restructuring actions in response to the drastic erosion in Chrysler's financial performance that started in mid-2000, Chrysler's situation
