Fitch Assigns Expected National Rating To DaimlerChrysler -- Thailand's -- Guaranteed Bonds.Business Editors BANGKOK & LONDON & NEW YORK--(BUSINESS WIRE)--Aug. 25, 2003 Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. (Thailand) Limited has today assigned an expected Long-term National rating of 'AA+(tha)' to the THB THB In currencies, this is the abbreviation for the Thai Baht. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 3.0 billion three-year guaranteed debentures to be issued by DaimlerChrysler (Thailand) Limited ("DCT (Discrete Cosine Transform) An algorithm that is widely used for data compression. Similar to Fast Fourier Transform, DCT converts data (pixels, waveforms, etc.) into sets of frequencies. The first frequencies in the set are the most meaningful; the latter, the least. "). The Outlook is Stable. The rating is based entirely on a full, irrevocable and unconditional guarantee by DaimlerChrysler AG ("DCX DCX DaimlerChrysler Ag (stock symbol) DCX Dixie Chicks (American country rock band) DCX Multipage PCX (file extension/format) DCX Double Convex DCX Double Charge Exchange "). Fitch Ratings has assigned an international Long-term foreign currency rating to DCX of 'BBB+' with a Stable Outlook. The international 'BBB+' rating for DCX is currently at the same level as Thailand's international local currency rating. Nevertheless, the positive trend of Thailand's sovereign credit Sovereign credit is the credit of a sovereign country backed by the financial resources of that state. Sovereign credit is the opposite of sovereign debt. Fiat money is sovereign credit and sovereign bonds are sovereign debts. When money buys bonds, sovereign credit cancels sovereign debt. , which contrasts with concerns about the outlook for the automobile industry automobile industry, the business of producing and selling self-powered vehicles, including passenger cars, trucks, farm equipment, and other commercial vehicles. globally, might at some stage result in Thailand's sovereign rating becoming higher than that of DCX. In general, the international rating of any guarantor should be above the international local currency rating of the Thai government in order for the guaranteed debt to achieve a 'AAA' Thai national rating. Accordingly, although DCX currently enjoys the same rating as Thailand, the guaranteed bonds are not rated 'AAA'. The rating of DCX reflects its leading position as a manufacturer in the premium segment of the global automotive market and in the commercial vehicle market - both activities with a global reach. The rating also reflects the strong challenges that the Chrysler Group faces in regaining competitiveness. DCX is the third largest automotive manufacturer in the world, supplying both the premium and the volume segments, with revenue of around EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 150 billion in 2002. A swing to EUR6.9bn operating group profit for 2002 from a EUR1.3bn loss in 2001 has been the main driver of the strong improvement in creditor protection measures. Cash surpluses were used to pay down group debt whilst exchange rate movements have lowered the book value of the company's USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. denominated debt. As a combined result, the net debt (excluding the Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. division) to EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ratio improved to 0.1x (FY2001: 1.2x), while EBITDA-based gross interest coverage rose to 8.6x (FY2001: 3.2x). DCT is 99.99% owned by DCX. DCT is responsible for the import and wholesale functions for Mercedes-Benz vehicles and Chrysler automobiles (after the merger of Daimler-Benz and Chrysler Group in 1998) for distribution in Thailand. Mercedes-Benz is well recognized in the premium segment in Thailand, with its relatively low after-sales service costs and the high value of its products in the second-hand market. Mercedes-Benz has maintained its leading position in the premium car segment for several decades, with a market share of around one third. In addition, DCT provides hire purchase and leasing services through its wholly-owned leasing subsidiary, DaimlerChrysler Leasing (Thailand) Company Limited. The outlook for DCT's business in Thailand is generally positive with a continuing recovery in the Thai economy and consumer spending boosting DCT's sales. Fitch believes that DCX will provide support to ensure full and timely payment to the holders of the guaranteed debentures issued by DCT in Thailand. Full rating reports on DaimlerChrysler (Thailand) Limited and DaimlerChrysler AG are available on the agency's subscriber website at www.fitchresearch.com Note to Editors: Fitch's National ratings provide a relative measure of creditworthiness Creditworthiness The condition in which the risk of default on a debt obligation by that entity is deemed low. Creditworthiness Eligibility of an individual or firm to borrow money. for rated entities in countries with relatively low international sovereign ratings and where there is demand for such ratings. The best risk within a country is rated 'AAA' and other credits are rated only relative to this risk. National ratings are designed for use mainly by local investors in local markets and are signified by the addition of an identifier for the country concerned, such as 'AAA(tha)' for National ratings in Thailand. Specific letter grades are not therefore internationally comparable. |
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