Fitch rates Daimler Chrysler (Thailand) debentures AA(tha)

Fitch Ratings said it assigned a final national long-term rating of AA(tha) to DaimlerChrysler (Thailand) Ltd.'s new THB2.5 billion guaranteed debentures 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). The international BBB+ rating for DaimlerChrysler is currently two notches below Thailand's long-term local-currency issuer default rating of A with stable outlook. Therefore, the guaranteed debentures are rated two notches below Thailand's national AAA(tha) rating, the agency said.

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

However, the rating also reflects substantial challenges that the group will need to address to maintain the positive momentum, the agency added. Automotive markets remain extremely challenging with competition intensifying and low growth prospects in the United States and Western Europe, Fitch said.

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