Following the recent upgrade of the issuer rating to A+/Stable from A/Positive, Scope has updated its analytical report on Mercedes-Benz Group AG.

The rating upgrade is driven by Mercedes-Benz Group’s improved business risk profile on the back of structurally higher operating profitability, stemming from the strategic shift to the luxury space coupled with a continuous streamlining of the fixed cost base. The rating continues to be strongly supported by its financial risk profile, which has further improved in terms of debt protection and net cash position.

The Stable Outlook reflects Scope’s expectations that the group’s profitability will show strong resilience amid continued inflationary pressures, a challenging demand environment and intensified competition in the electric vehicle space. The stable Outlook also reflects Scope’s expectation that Mercedes-Benz group will maintain solid credit metrics, even in a less supportive environment in the next 12-18 months.

This monitoring note does not constitute a credit rating action, nor does it indicate the likelihood that Scope will conduct a credit rating action in the short term. On 22 December 2023, Scope upgraded the issuer rating to A+/Stable from A/Positive. Scope also upgraded the senior unsecured debt rating to A+ from A and the short-term debt rating to S-1+ from S-1. Click here for the corresponding rating action release. The latest information on the credit ratings in this monitoring note along with the associated rating history can be found on www.scoperatings.com.

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