I think it would depend on the store. Many here say that TMs that haven't worked a full year cannot get DEO, yet some here say they have gotten DEO despite that.
If it's up to the STL, I'd imagine some would feel the raise that accompanied the promotion justifies a lower rating (merit raise) come review time. After all, a promotion is often based on merit, so an increase in base pay due to a promotion could be thought of as a "merit raise" as well. So instead of getting DEO and 6% as a newly promoted TL, based off your performance as a TM, the promotion itself and base increase could be viewed as the merit raise.