Daimler has revised its 2020-2021 earnings guidance materially downward, linked to higher than expected regulatory costs, demanding investments, and gloomier market conditions for its large commercial vehicles business. Management has also said it considers the company's year-end 2020 carbon dioxide (CO2) target in Europe very challenging, while it could face further profitability pressure in the event of higher tariffs between the U.S. and China, or Europe and the U.K. in 2020-2021, leading us to no longer expect a 10% or higher adjusted EBITDA margin in 2020. Given the magnitude of the earnings revision and materiality of risk exposure, we are placing our 'A/A-1' long-term and short-term issuer credit and 'A' issue ratings on Daimler on CreditWatch with negative implications. We
