Mercedes-Benz Japan Co. Ltd ratings withdrawn; new rating for Mercedes-Benz Finance Co., Ltd
The latest information on the rating, including rating reports and related methodologies, is available on this LINK.
Scope Ratings GmbH (Scope) has withdrawn the A/Positive issuer rating and A senior unsecured debt category rating on Mercedes-Benz Japan Co. Ltd. Scope’s decision to withdraw the ratings was for business reasons.
Simultaneously, Scope has assigned an A senior unsecured debt category rating to Mercedes-Benz Finance Co., Ltd.
The withdrawal of the ratings and Outlook on Mercedes-Benz Japan Co. Ltd and the cessation of analytical coverage were for business reasons. Scope had assessed that the ratings prior to their withdrawal were at appropriate levels.
The newly assigned A senior unsecured debt category rating for Mercedes-Benz Finance Co., Ltd is in line with the issuer rating of its parent company, Mercedes-Benz Group AG (rated A/Positive by Scope), and is grounded on the unconditional and irrevocable guarantee provided by Mercedes-Benz Group AG to Mercedes-Benz Finance Co., Ltd as part of the group’s EUR 70bn EMTN programme.
The parent’s issuer rating is strongly supported by its solid financial risk profile, including a longstanding net cash position and improved cash flow generation capability. The rating remains somewhat constrained by an increasingly challenging market position, mitigated by the clear shift towards the upper-premium and luxury segments.
Stress testing & cash flow analysis
No stress testing was performed. Scope Ratings performed its standard cash flow forecasting for the company.
The methodologies used for these Credit Ratings, (General Corporate Rating Methodology, 16 October 2023; European Automotive and Commercial Vehicle Manufacturers Rating Methodology, 11 February 2022), are available on https://scoperatings.com/governance-and-policies/rating-governance/methodologies.
Information on the meaning of each Credit Rating category, including definitions of default, recoveries, Outlooks and Under Review, can be viewed in ‘Rating Definitions – Credit Ratings, Ancillary and Other Services’, published on https://www.scoperatings.com/governance-and-policies/rating-governance/definitions-and-scales. Historical default rates of the entities rated by Scope Ratings can be viewed in the Credit Rating performance report at https://scoperatings.com/governance-and-policies/regulatory/eu-regulation. Also refer to the central platform (CEREP) of the European Securities and Markets Authority (ESMA): http://cerep.esma.europa.eu/cerep-web/statistics/defaults.xhtml. A comprehensive clarification of Scope Ratings’ definitions of default and Credit Rating notations can be found at https://www.scoperatings.com/governance-and-policies/rating-governance/definitions-and-scales. Guidance and information on how environmental, social or governance factors (ESG factors) are incorporated into the Credit Rating can be found in the respective sections of the methodologies or guidance documents provided on https://scoperatings.com/governance-and-policies/rating-governance/methodologies.
The Outlook indicates the most likely direction of the Credit Ratings if the Credit Ratings were to change within the next 12 to 18 months.
Solicitation, key sources and quality of information
The Rated Entity and/or its Related Third Parties participated in the Credit Rating process.
The following substantially material sources of information were used to prepare the Credit Ratings: public domain, the Rated Entity and Scope Ratings' internal sources.
Scope Ratings considers the quality of information available to Scope Ratings on the Rated Entity or instrument to be satisfactory. The information and data supporting the Credit Ratings originate from sources Scope Ratings considers to be reliable and accurate. Scope Ratings does not, however, independently verify the reliability and accuracy of the information and data.
Prior to the issuance of the Credit Rating action, the Rated Entity was given the opportunity to review the Credit Ratings and the principal grounds on which the Credit Ratings are based. Following that review, the Credit Ratings were not amended before being issued.
These Credit Ratings are issued by Scope Ratings GmbH, Lennéstraße 5, D-10785 Berlin, Tel +49 30 27891-0. The Credit Ratings are UK-endorsed.
Lead analyst: Georges Dieng, Director
Person responsible for approval of the Credit Ratings: Sebastian Zank, Managing Director
The Mercedes-Benz Japan Co. Ltd. Credit Ratings/Outlook were first released by Scope Ratings on 27 April 2017. The Credit Ratings/Outlook were last updated on 23 December 2022.
The Mercedes-Benz Finance Co., Ltd senior unsecured debt Credit Rating was first released by Scope on 20 November 2023.
See www.scoperatings.com under Governance & Policies/Regulatory for a list of potential conflicts of interest disclosures related to the issuance of Credit Ratings.
Conditions of use/exclusion of liability
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