Fitch Rates Mercedes-Benz (Thailand)'s MTN Programme 'AAA(tha)'
KEY RATING DRIVERS
Guaranteed by Daimler: The ratings of the MTN programmes are based solely on the full, irrevocable and unconditional guarantee provided by Daimler AG (Daimler). Daimler's Long-Term Foreign Currency Issuer Default Rating (IDR) of 'A-' is at the same level with Thailand's Long-Term Local Currency IDR of 'A-', which correlates to the National Long-Term rating of 'AAA(tha)'.
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 vehicles and completely knocked-down 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.
Luxury Car Leader: MBTh is one of Thailand's premium-car market leaders, with more than 40% share of the premium-car market in terms of unit sales. The company also provides hire-purchase and leasing services through its wholly-owned leasing subsidiary, Mercedes-Benz Leasing (Thailand) Company Limited.
Negative: Future developments that may, individually or collectively, lead to negative rating action include
- The rating on the guaranteed MTNs could be downgraded if Daimler's Long-Term Foreign-Currency IDR falls below Thailand's Long-Term Local-Currency IDR.
Positive: The rating of MBTh's guaranteed MTNs are at the highest end of the National Rating scale, therefore there is no potential rating upside.