The EUR 608.0m closing underlying portfolio, as of September 2025, of payroll-deductible loans was originated to individual borrowers by IBL Banca.

The rating action is driven by weaker interest cover ratio, occupancy rates and weighted average lease term which has led to a downward revision of the issuer rating.

The underlying portfolio of secured and unsecured NPL loans was originated by Banca Nazionale del Lavoro S.p.A. and is serviced by Prelios Credit Servicing S.p.A.

This publication does not constitute a rating action.

Class B and Class C notes have been fully repaid.

The rating is supported by a very strong business risk profile and the company’s status as a government-related entity, while the relatively weak financial risk profile is a constraint.

The affirmed rating reflects the issuer’s moderate business risk and financial risk profiles, assessed at BB+, and a positive one-notch adjustment for the group’s status as a government-related entity.

The issuer rating of the rated entity is derived from the A rating of its parent Mercedes-Benz Group AG, reflecting the latter’s explicit guarantee on an outstanding bond and implicit guarantee to the rated entity.

The downgrade reflects the effects of adverse business conditions in 2025, which are likely to continue into 2026. The Outlook reflects the good prospects of the planned product launches combined with ongoing cost reductions.

The underlying portfolio is composed of secured and unsecured NPL loans originated by 15 Italian banks and serviced by Special Gardant S.p.A. and Fire S.p.A. as special servicers.