Fitch Assigns Expected National Rating To DaimlerChrysler -- Thailand's -- Guaranteed Bonds

BANGKOK & LONDON & NEW YORK--Aug. 2, 20035, 2003--Fitch Ratings (Thailand) Limited has today assigned an expected Long-term National rating of 'AA+(tha)' to the THB3.0 billion three-year guaranteed debentures to be issued by DaimlerChrysler (Thailand) Limited ("DCT").

The Outlook is Stable. The rating is based entirely on a full, irrevocable and unconditional guarantee by DaimlerChrysler AG ("DCX"). Fitch Ratings has assigned an international Long-term foreign currency rating to DCX of 'BBB+' with a Stable Outlook.

The international 'BBB+' rating for DCX is currently at the same level as Thailand's international local currency rating. Nevertheless, the positive trend of Thailand's sovereign credit, which contrasts with concerns about the outlook for the automobile industry globally, might at some stage result in Thailand's sovereign rating becoming higher than that of DCX. In general, the international rating of any guarantor should be above the international local currency rating of the Thai government in order for the guaranteed debt to achieve a 'AAA' Thai national rating. Accordingly, although DCX currently enjoys the same rating as Thailand, the guaranteed bonds are not rated 'AAA'.

The rating of DCX reflects its leading position as a manufacturer in the premium segment of the global automotive market and in the commercial vehicle market - both activities with a global reach. The rating also reflects the strong challenges that the Chrysler Group faces in regaining competitiveness. DCX is the third largest automotive manufacturer in the world, supplying both the premium and the volume segments, with revenue of around EUR150 billion in 2002. A swing to EUR6.9bn operating group profit for 2002 from a EUR1.3bn loss in 2001 has been the main driver of the strong improvement in creditor protection measures. Cash surpluses were used to pay down group debt whilst exchange rate movements have lowered the book value of the company's USD denominated debt. As a combined result, the net debt (excluding the Financial Services division) to EBITDA ratio improved to 0.1x (FY2001: 1.2x), while EBITDA-based gross interest coverage rose to 8.6x (FY2001: 3.2x).

DCT is 99.99% owned by DCX. DCT is responsible for the import and wholesale functions for Mercedes-Benz vehicles and Chrysler automobiles (after the merger of Daimler-Benz and Chrysler Group in 1998) for distribution in Thailand. Mercedes-Benz is well recognized in the premium segment in Thailand, with its relatively low after-sales service costs and the high value of its products in the second-hand market. Mercedes-Benz has maintained its leading position in the premium car segment for several decades, with a market share of around one third. In addition, DCT provides hire purchase and leasing services through its wholly-owned leasing subsidiary, DaimlerChrysler Leasing (Thailand) Company Limited. The outlook for DCT's business in Thailand is generally positive with a continuing recovery in the Thai economy and consumer spending boosting DCT's sales. Fitch believes that DCX will provide support to ensure full and timely payment to the holders of the guaranteed debentures issued by DCT in Thailand.

Full rating reports on DaimlerChrysler (Thailand) Limited and DaimlerChrysler AG are available on the agency's subscriber website at www.fitchresearch.com

Note to Editors: Fitch's National ratings provide a relative measure of creditworthiness for rated entities in countries with relatively low international sovereign ratings and where there is demand for such ratings. The best risk within a country is rated 'AAA' and other credits are rated only relative to this risk. National ratings are designed for use mainly by local investors in local markets and are signified by the addition of an identifier for the country concerned, such as 'AAA(tha)' for National ratings in Thailand. Specific letter grades are not therefore internationally comparable.