The ratings on Chrysler LLC reflect the multiple challenges the company faces in stemming the cash outflows from its North American automotive operations, as well as the vulnerability of its financial services affiliate, DaimlerChrysler Financial Services Americas LLC (DCFS), to further deterioration in credit market conditions. We view DCFS as effectively a captive finance company of Chrysler. This conclusion is based on DCFS' substantial reliance on Chrysler for its business volumes and overall economic well-being. Additionally, both entities share a common majority owner in Cerberus Capital Management L.P. As a result of this designation, DCFS' issuer rating is equalized with that of Chrysler. Chrysler is more heavily reliant on North American sales of light trucks than either of its other
