Fitch Assigns Mercedes-Benz (Thailand)#s MTN Programme #AAA(tha)# Rating

Stocks and Financial Services Press Releases Wednesday November 6, 2019 16:24
Bangkok--6 Nov--Fitch Ratings

Fitch Ratings-Bangkok-06 November 2019: Fitch Ratings (Thailand) Limited has assigned Mercedes-Benz (Thailand) Limited's (MBTh) new guaranteed medium-term debenture (MTN) programme of up to THB20 billion a final National Long-Term Rating of 'AAA(tha)'. The Outlook is Stable.

The debentures under the MTN programme are guaranteed by MBTh's ultimate parent, Daimler AG (A-/Stable). A change in Fitch's assessment of the credit quality of Daimler would result in a change in the rating on MBTh's debentures issued under its MTN programme. The final rating follows the receipt of documents conforming to information already received and is in line with the expected rating assigned on 17 October 2019.


Guaranteed by Daimler: The rating of the MTN programme is based solely on the full, irrevocable and unconditional guarantee provided by Daimler. The guarantee ranks pari-passu with all other unsecured and unsubordinated creditors of Daimler. Daimler's senior unsecured notes are rated at the same level as its Long-Term Foreign-Currency Issuer Default Rating (IDR) of 'A-', which is higher than Thailand's Long-Term Local-Currency IDR of 'BBB+'. As a result, the National Rating on the guaranteed medium-term debenture programme is at the highest end of Thailand's National Rating scale.

The rating of MBTh's MTN programme is based entirely on the full, irrevocable and unconditional guarantee provided by Daimler.
Not applicable
Developments That May, Individually or Collectively, Lead to Positive Rating Action
  • The rating of MBTh's guaranteed MTN programme is at the highest end of the National Rating scale, therefore there is no potential rating upside.
Developments That May, Individually or Collectively, Lead to Negative Rating Action
  • The guaranteed MTN programme could be downgraded if Daimler's Long-Term Foreign-Currency IDR falls below Thailand's Long-Term Local-Currency IDR.

Manageable Liquidity: MBTh's external debt as of end-2018 consisted of bank loans (72%) and Thai baht debentures (28%), all guaranteed by Daimler. Of this, THB16.7 billion of debt will mature in 2019, and is partly covered by cash on hand of THB555 million and available uncommitted credit facilities of THB9.7 billion at end-2018. MBTh also has good access to additional credit facilities and capital markets as it is backed by a strong parent. The company's debt is mainly used to fund its financial service business.

Latest Press Release

New Initiative launched at Davos to Decarbonize Mineral and Industrial Supply Chains

The COMET Method will provide an important first step in decarbonizing industry by giving insight into the CO2 emissions from the production of key materials like steel, copper, and cement. Rocky Mountain Institute, MIT Sustainable Supply Chains, the...

Standard Chartered Bank: Thailands 2020 Growth to Stay Soft, Rate-Cutting Cycle Not Over Yet

- Thailand's potential growth rate of around 4%, which was achieved in 2017-18, is likely to remain elusive for the foreseeable future - Strong THB is out of line with Thailand's weakening fundamentals and raises concerns for the BoT - We have a...

Bangkok Bank reports 2019 net profit of Baht 35,816 million

In 2019, the Thai economy expanded at a slower rate than in 2018 as export contraction led to the decline in manufacturing production and private investment. Weaker global growth, uncertainties around global trade relationship, and the...

CIMB THAIs net profit for 2019 surges 216-fold from 2018 to THB 1,501.6 million.

- Provisions decreased by 48.7% YoY resulting from remedial actions to improve the assets quality. - Operating income increased by THB 472.5 million to THB 14.2 billion YoY. - Higher net interest income of THB 160.6 million YoY. - Net fee and service...

KASIKORNBANK announces 2019 net profit of Baht 38,727 Million

Ms. Kattiya Indaravijaya, President of KASIKORNBANK, said Thai economic activity in 2019 showed no clear recovery. Thai exports contracted further due to a stronger Baht and a global economic slowdown, although the US and China reached an agreement and...

Related Topics