Fitch affirms Mercedes-Benz Thailand

Fitch Ratings said it affirmed the AA+(tha) national long-term rating of Mercedes-Benz (Thailand) Ltd.'s 2.5 billion in Thai baht guaranteed debentures due 2009.

The outlook is stable.

The rating is based entirely on the full guarantee provided by its parent, Daimler AG, which has a long-term foreign-currency issuer default rating of A- with a stable outlook. That is one notch below Thailand's international long-term local-currency issuer default rating of A with a stable outlook.

The ratings of Daimler reflect the group's improved credit profile following the sale of an 80.1% stake in Chrysler, which will considerably reduce uncertainty and risk, Fitch said. The ratings also are underpinned by Daimler's broad geographical and business diversification and solid position in the automotive and commercial vehicles industries, the agency said.

However, automotive markets continue to be extremely challenging with fierce competition and low growth prospects in the United States and Western Europe, Fitch added.

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