Bangkok--9 Sep--Fitch Ratings
Fitch Ratings (Thailand) Limited has affirmed Mercedes-Benz (Thailand) Limited’s (MBTh) THB10bn medium-term debenture programme guaranteed by its parent, Daimler AG (Daimler; A-/Stable), at National Long-Term ‘AAA(tha)’ The Outlook is Stable.
Key Rating Drivers
Guaranteed by Daimler: The rating of the MTN programme is based solely on the full, irrevocable and unconditional guarantee provided by Daimler. Daimler’s Long-Term Foreign Currency Issuer Default Rating of ‘A-’ is at the same level as Thailand’s Long-Term Local Currency IDR, which correlates with ‘AAA(tha)’ on Fitch’s Thai National Rating scale.
Strong relationship with Daimler: MBTh is 99.99% owned by Daimler, with which it has strong operational and financial links. MBTh imports both completely built-up (CBU) vehicles and completely knocked-down (CKD) kits from Daimler for local assembly and distribution. MBTh also is closely monitored by Daimler’s regional treasury centre and strictly implements the group’s treasury policy.
A luxury-car leader: MBTh is one of Thailand’s premium-car market leaders, due to its low after-sales service costs and the high value its vehicles command in the second-hand market. The company also provides hire-purchase and leasing services through its wholly-owned leasing subsidiary, Mercedes-Benz Leasing (Thailand) Company Limited.
Rating Sensitivities
Negative: Future developments that may, individually or collectively, lead to negative rating action include
- Any rating action that results in Daimler’s Long-Term Foreign-Currency IDR falling below Thailand’s Long-Term Local-Currency IDR will affect the National Ratings of MBTh’s MTN programme.
Positive: The rating of MBTh’s MTN programme is capped at ‘AAA(tha)’, the highest possible rating on the National Rating scale.