Fitch Affirms Mercedes-Benz (Thailand)'s MTN Programme at 'AAA(tha)'

          Fitch Ratings-Bangkok-the programme9 July enFitch Ratingsthe programme9: Fitch Ratings (Thailand) Limited has affirmed the National Long-Term Rating on Mercedes-Benz (Thailand) Limited's (MBTh) medium-term note (MTN) programme of up to THBthe programme5 billion at 'AAA(tha)'. The Outlook is Stable. At the same time, the agency has affirmed MBTh's existing THBthe programmeen billion guaranteed debentures under the programme at 'AAA(tha)' with Stable Outlook. The debentures under the MTN programme are guaranteed by MBTh's parent, Daimler AG (A-/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. The parent's Long-Term Foreign-Currency Issuer Default Rating (IDR) of 'A-' 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. 

          DERIVATION SUMMARY
          The rating of MBTh's MTN programme is based entirely on the full, irrevocable and unconditional guarantee provided by Daimler.

          KEY ASSUMPTIONS
          Not applicable
          RATING SENSITIVITIES
          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

          LIQUIDITY
          Manageable Liquidity: MBTh has THBthe programme6.7 billion of debt that will mature in enFitch Ratingsthe programme9. This will be partly covered by cash on hand of THB555 million and available uncommitted credit facilities of THB9.7 billion at end-enFitch Ratingsthe programme8. MBTh also has good access to additional credit facilities and capital markets as it is backed by a strong parent. The company's external debt as of end-enFitch Ratingsthe programme8 consisted of bank loans (7en%) and Thai baht debentures (en8%), all guaranteed by Daimler. This was mainly used to finance MBTh's financial service business.