Fitch cuts Mercedes-Benz (Thailand)

Fitch Ratings said it downgraded the national long-term rating of Mercedes-Benz (Thailand) Ltd.'s 2.5 billion in Thai baht guaranteed debentures due 2009 to AA(tha) from AA+(tha), following a downgrade on Daimler AG, the company's guarantor and parent.

The outlook is stable.

The rating is based entirely on the full, irrevocable and unconditional guarantee provided by Daimler, Fitch said.

The downgrade reflects the revision of forecasts for Daimler in 2009 and 2010, the agency said. Fitch said it now anticipates Daimler to exhibit much weaker profitability and cash generation than previously expected. The extent of the deterioration shows Daimler's lower-than-expected resilience in a challenging environment, Fitch said.

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