Fitch rates DaimlerChrysler (Thailand) debt AA(tha)

Fitch Ratings said it assigned an expected national long-term rating of AA(tha) to DaimlerChrysler (Thailand) Ltd.'s upcoming guaranteed debentures of up to THB3.0 billion due in 2009.

The outlook is stable.

The rating is based entirely on the full, irrevocable and unconditional guarantee on the debentures by DaimlerChrysler AG (rated BBB+ with stable outlook). The international BBB+ rating for DaimlerChrysler Thailand is currently two notches below Thailand's long-term local-currency issuer default rating of A with a stable outlook. Therefore, the guaranteed debentures are rated two notches below Thailand's national AAA(tha) rating. The rating is contingent upon receipt of final documents.

Fitch said that any changes in the international rating differential between DaimlerChrysler Thailand and the Thai sovereign will affect the debentures' national rating.

The rating of the guarantor reflects the group's leading position in the automotive and trucks industries, its sound business and geographic diversification, as well as its strengthening financial profile, the agency said.

However, the rating also reflects substantial challenges that the group will need to address to maintain the positive momentum, Fitch added.

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