DBRS Morningstar Notes Daimler AG’s Name Change to Mercedes-Benz Group AG

DBRS Limited (DBRS Morningstar) notes that, effective February 1, 2022, Daimler AG (rated A (low) with a Stable trend by DBRS Morningstar) changed its name to Mercedes-Benz Group AG.

ESG CONSIDERATIONS
A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/373262.

Notes:
The principal methodologies are Rating Companies in the Automotive Manufacturing and Supplier Industries (October 14, 2021; https://www.dbrsmorningstar.com/research/385892), DBRS Morningstar Criteria: Guarantees and Other Forms of Support (May 31, 2021; https://www.dbrsmorningstar.com/research/379424), and DBRS Morningstar Criteria: Commercial Paper Liquidity Support for Nonbank Issuers (March 9, 2021; https://www.dbrsmorningstar.com/research/375001), which can be found on dbrsmorningstar.com under Methodologies & Criteria. Other applicable methodologies include the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings (February 3, 2021; https://www.dbrsmorningstar.com/research/373262).

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at [email protected].

The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

This rating is endorsed by DBRS Ratings Limited for use in the United Kingdom, and by DBRS Ratings GmbH for use in the European Union, respectively. The following additional regulatory disclosures apply to endorsed ratings:

Each of the principal methodologies employed in the analysis addressed one or more particular risks or aspects of the rating and were factored into the rating decision. Specifically, Rating Companies in the Automotive Manufacturing and Supplier Industries (October 14, 2021) was the primary rating methodology applied in determining the rating of parent company Mercedes-Benz Group AG. Subsequently, DBRS Morningstar Criteria: Guarantees and Other Forms of Support (May 31, 2021) was applied in determining the ratings of Daimler Canada Finance Inc. and Daimler Finance North America LLC, both of which benefit from a Guarantee of Mercedes-Benz Group AG. The Guarantee, in combination with DBRS Morningstar’s assessment of additional implicit support considerations, including (but not limited to) business, reputational, and financial factors (that are deemed likely to motivate a parent or affiliated company to support its subsidiary issuer), results in a flow through of Mercedes-Benz Group AG’s rating to Daimler Canada Finance Inc. and Daimler Finance North America LLC. Finally, DBRS Morningstar Criteria: Commercial Paper Liquidity Support for Nonbank Issuers (March 9, 2021) was applied to ensure that the provided liquidity in support of Daimler Canada Finance Inc.’s and Daimler Finance North America LLC’s Commercial Paper ratings was consistent with DBRS Morningstar Criteria.

The last rating action took place on November 18, 2021, when DBRS Morningstar upgraded the long-term ratings of Mercedes-Benz Group AG to A (low) with a Stable trend.

Generally, the conditions that lead to the assignment of a Negative or Positive trend are resolved within a 12-month period. DBRS Morningstar trends and ratings are under regular surveillance.

For further information on DBRS Morningstar historical default rates published by the European Securities and Markets Authority (ESMA) in a central repository, see: http://cerep.esma.europa.eu/cerep-web/statistics/defaults.xhtml. DBRS Morningstar understands further information on DBRS Morningstar historical default rates may be published by the Financial Conduct Authority (FCA) on its webpage: https://www.fca.org.uk/firms/credit-rating-agencies.

Lead Analyst: Robert Streda, Senior Vice President, Diversified Industries
Rating Committee Chair: Charles Halam-Andres, Managing Director, Diversified Industries & Sports Finance
Initial Rating Dates: Mercedes-Benz Group AG – August 29, 2000
Daimler Canada Finance Inc. – May 19, 1995
Daimler Finance North America LLC – November 14, 2016

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at [email protected].

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-- Rating Companies in the Automotive Manufacturing and Supplier Industries (October 14, 2021)
https://www.dbrsmorningstar.com/research/385892
-- DBRS Morningstar Criteria: Guarantees and Other Forms of Support (May 31, 2021)
https://www.dbrsmorningstar.com/research/379424
-- DBRS Morningstar Criteria: Commercial Paper Liquidity Support for Nonbank Issuers (March 9, 2021)
https://www.dbrsmorningstar.com/research/375001