...February 21, 2023 FRANKFURT (S&P Global Ratings) Feb. 21, 2023--S&P Global Ratings said today that global premium carmaker Mercedes-Benz Group AG's (Mercedes; A-/Positive/A-2) 2022 results and 2023 guidance are in line with our expectations and consistent with the scenario underlying our positive outlook. Despite 2022 adjusted free operating cash flow (FOCF) to sales of 6.3%-6.7%, which was at the lower end of our forecast range, and Mercedes' EBIT margin guidance for its Cars and Vans segments indicating a 1.0¡1.5 percentage point contraction in 2023 (at the midpoint), we continue to project profitability and FOCF above our upside triggers this year (see "Mercedes-Benz Group AG," published Jan. 24, 2023, on RatingsDirect). As a result, rating upside will mainly hinge on Mercedes' ability to manage downside risks to our base case emanating from pricing, cost inflation, and supply chain hiccups, in addition to progress with implementing its electrification strategy. The company's announced...
