On May 14, 2007, Standard&Poor's Ratings Services placed its 'BBB' long-term corporate credit ratings on DaimlerChrysler AG and related entities on CreditWatch with positive implications. The group's 'A-2' short-term corporate credit rating was affirmed. The CreditWatch placement follows the company's announcement that U.S. private equity investment firm Cerberus Capital Management, L.P. will take over an 80.1% stake in newly founded Chrysler Holding LLC. While the transaction is expected to result in a net cash outflow of €0.5 billion for DaimlerChrysler and reduce the group's 2007 net profit by €3 billion-€4 billion, we expect the business risk profile of the remaining group, Daimler AG, to benefit from the separation of its Chrysler operations. Furthermore, we view it as a
