Following the recent affirmation of the A issuer rating and the Outlook revision to Positive from Stable, Scope has updated its analytical report on Mercedes-Benz Group AG.

The rating benefits from: i) the group’s strong financial risk profile, mirrored in a sizeable net cash position in the industrial business and solid free cash flow generation; ii) a broad premium product coverage ang strong geographical outreach; and iii) a sharp recovery in operating profitability, now above the sector’s average.

Negative rating factors include the substantial investments required to develop a large portfolio of electrified vehicles and meet increasingly stringent emission standards across the globe.
The change in Outlook reflects Scope’s expectations that the group’s profitability will structurally improve and 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 23 December 2022, Scope affirmed the issuer rating at A and revised the Outlook to Positive from Stable. Scope also affirmed the senior unsecured debt rating at A. 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.

Click here to download the report.