TEXT-Fitch rates Mercedes-Benz (Thailand)'s MTN programme 'AAA(tha)'

(The following was released by the rating agency)

BANGKOK/SINGAPORE, May 15 (Fitch) Fitch Ratings (Thailand) Limited has assigned Mercedes-Benz (Thailand) Limited's (MBTh) guaranteed medium-term debentures programme of up to THB10bn a National Long-Term 'AAA(tha)' rating. The Outlook is Stable.

The rating of the programme is based entirely on a full, irrevocable and unconditional guarantee provided by Daimler AG (Daimler). Daimler's Long-Term Foreign Currency Issuer Default Rating (LTFC IDR) of 'A-'/Stable is at the same level as Thailand's Long-Term Local Currency (LTLC) IDR. Fitch notes that a downgrade in Daimler's LTFC IDR below Thailand's 'A-' LTLC IDR could negatively affect the notes' National rating. It should be noted that a one-notch change in an International rating could result in a change of more than one notch in a National rating.

MBTh is 99.99%-owned by Daimler. Since 2000, MBTh has been responsible for the import and wholesale functions of Mercedes-Benz vehicles for distribution in Thailand. It also provides hire-purchase and leasing services through its wholly-owned leasing subsidiary, Mercedes-Benz Leasing (Thailand) Company Limited.