...FRANKFURT (S&P Global Ratings) July 29, 2022--S&P Global Ratings said today that strong first-half 2022 profit margins at global premium carmaker Mercedes-Benz Group AG (Mercedes; A-/Stable/A-2) meaningfully strengthen the case for rating upside absent a further material deterioration in economic and industry conditions. However, we see heightening risks for Mercedes' profitability and cash flow prospects in our base case for 2022-2024. Rather than company-specific factors, these risks mainly relate to potential fresh supply chain disruptions, particularly as a result of energy shortages in Europe, and increasing uncertainty over the resilience of auto demand from 2023. Evidence that Mercedes is managing these risks well and a longer track record of it expanding its electric-vehicle market share in China and the U.S. will be decisive factors in the possibility and timing of rating upside. Despite difficult market conditions, we have raised our forecasts for Mercedes' margins and cash flow...
