Mercedes parent Daimler (DAIGn.DE) has already completed its refinancing for 2009 and has started procuring cash for the coming year as well with a recent bond issue, the company's chief financial officer said in a report by German paper Boersen-Zeitung.

We have already begun covering our liquidity needs for 2010, Bodo Uebber said in an interview published on Monday, indicating that the company will likely not tap debt markets again during the remainder of this year.

He explained that the 13.4 billion euros ($19.2 billion) in gross industrial cash held at the end of June were more than sufficient, since Daimler only needs about 7-8 billion to keep its operations running.

The company could even maintain its positive free cash flow for the full year, Uebber said.

In a further sign that credit markets have eased up even for carmakers, the Daimler CFO said the cost for debt capital has declined, with the company currently paying 4.5 percent interest on a 5-year bond.

By comparison, at the height of the credit and auto market crisis, Daimler was forced to pay a coupon of 9 percent to borrow 1 billion euros for just three years. [ID:nN01517608]

Standard & Poor's downgraded Daimler's long-term corporate credit rating one notch to BBB+ in mid-June, with a negative outlook.

(Reporting by Christiaan Hetzner; Editing by Richard Chang) Mercedes parent Daimler (DAIGn.DE) has already completed its refinancing for 2009 and has started procuring cash for the coming year as well with a recent bond issue, the company's chief financial officer said in a report by German paper Boersen-Zeitung.

We have already begun covering our liquidity needs for 2010, Bodo Uebber said in an interview published on Monday, indicating that the company will likely not tap debt markets again during the remainder of this year.

He explained that the 13.4 billion euros ($19.2 billion) in gross industrial cash held at the end of June were more than sufficient, since Daimler only needs about 7-8 billion to keep its operations running.

The company could even maintain its positive free cash flow for the full year, Uebber said.

In a further sign that credit markets have eased up even for carmakers, the Daimler CFO said the cost for debt capital has declined, with the company currently paying 4.5 percent interest on a 5-year bond.

By comparison, at the height of the credit and auto market crisis, Daimler was forced to pay a coupon of 9 percent to borrow 1 billion euros for just three years. [ID:nN01517608]

Standard & Poor's downgraded Daimler's long-term corporate credit rating one notch to BBB+ in mid-June, with a negative outlook.

(Reporting by Christiaan Hetzner; Editing by Richard Chang)