Bangkok--2 Sep--Fitch Ratings
Fitch Ratings (Thailand) Limited has affirmed the National Long-Term ‘AAA(tha)’ rating of Mercedes-Benz (Thailand) Limited’s (MBTh) THB10bn medium-term debenture programme guaranteed by its parent, Daimler AG (Daimler; A-/Stable), as well as the debentures under the programme. 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 and Country Ceiling.
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 is also 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, with more than 40% premium-car market share. 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.