Citigroup downgraded Daimler to a ‘neutral’ rating from a ‘buy’ rating.
If Citigroup downgraded Daimler to a ‘neutral’ rating, analysts at Morgan Stanley upgraded the German automaker’s shares from an “underweight” rating to an “equal weight” rating, analysts at HSBC upgraded shares from a “neutral” rating to an “overweight” rating and analysts at Goldman Sachs upgraded shares from a “buy” rating to a “conviction-buy” rating. During mid-day trading yesterday, March 7th, Daimler shares dropped 1.25% to $59.88.
Last month, another automaker, PSA Peugeot Citroen, was downgraded by Fitch Ratings, to four levels below investment grade. Fitch Ratings downgraded PSA Peugeot Citroen to B+ from BB- with a negative outlook, which means that the company might cut Peugeot’s credit rating again, according to Tom Chruszcz, an analyst at Fitch in Warsaw.
“We are concerned by the continuously adverse market environment, notably in Europe, the region that dominates Peugeot’s sales, and its strategy to reverse losses and cash consumption may prove long and difficult,” Chruszcz said.
Also last month, Standard & Poor’s Ratings Services announced that PSA Peugeot Citroen’s bank division was cut one step to BB+, which is one step under the investment grade. As the two companies show no sign of improving there is always the danger of seeing their debt downgraded again.