Moody's rates Chrysler Financial loans B1, B2

Moody's Investors Service said it assigned a B1 corporate family rating to DaimlerChrysler Financial Services Americas LLC. The agency also assigned B1 ratings to its $4 billion first-lien term loan and $2 billion revolving credit facility and a B2 rating to its $2 billion second-lien term loan.

The outlook is stable.

Moody's rating is based on the firm's solid position in the auto financial services sector, including its beneficial affiliation with Chrysler Automotive LLC as Chrysler's exclusive provider of loans and leases incorporating car buyer incentives, the agency said.

But Chrysler Financial's business concentrations with Chrysler expose it to elevated operating and liquidity risks, Moody's said. With DaimlerChrysler AG's reduced interest in Chrysler Financial's parent company, the finance company must transition its funding away from inter-company reliance to third-party sources, which Moody's said it believes could result in less flexible liquidity.

"Chrysler Financial's stand-alone credit profile - setting aside the ownership and governance constraint - is stronger than its assigned B1 rating," Moody's analyst Mark Wasden said in a written statement.

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