CHICAGO--(BUSINESS WIRE)--Fitch Ratings has affirmed the ratings of Toyota Motor Credit Corporation (TMCC) and its affiliates, Toyota Motor Finance (Netherlands) B.V., Toyota Credit Canada Inc., Toyota Finance Australia Limited, and Toyota Kreditbank GmbH at 'A/F1'. The Rating Outlook is Stable. A full list of ratings follows at the end of this release.
The rating action follows Fitch's affirmation of Toyota Motor Corporation (Toyota) on Aug. 27, 2013. For more information on Fitch's rating rationale please see rating action commentary titled 'Fitch Affirms Toyota Motor at 'A'; Outlook Stable', dated Aug. 27, 2013.
KEY RATING DRIVERS
TMCC's and its finance affiliates' ratings are equalized with those of Toyota, based on Fitch's belief that TMCC is a 'core' subsidiary to the parent. Fitch notes that the parent has provided implicit and explicit support to TMCC and would expect Toyota to continue to do so in times of financial distress. TMCC's ratings also reflect the sound credit quality of its receivables portfolio, diversified funding mix and solid liquidity profile.
A negative rating action for TMCC could be driven by a change in the perceived relationship between the parent and subsidiary, such as if Fitch believed that TMCC had become less core to the parent's strategic operations or adequate financial support was not provided in a time of crisis. Additionally, the recognition of consistent operating losses, a material increase in leverage, and or/deterioration in TMCC's liquidity profile could also yield negative rating action.
Positive rating momentum for TMCC will be limited by Fitch's view of Toyota's credit profile.
Fitch has affirmed the following ratings:
Toyota Motor Credit Corporation;
Toyota Motor Finance (Netherlands) B.V.;
Toyota Credit Canada Inc.;
Toyota Finance Australia Limited; and
Toyota Kreditbank GmbH
--Long-Term Issuer Default Rating (IDR) at 'A';
--Short-term IDR at 'F1';
--Senior unsecured debt at 'A';
Toyota Motor Credit Corporation
--Short-term debt at 'F1'.
The Rating Outlook is Stable.
Additional information is available on www.fitchratings.com
Applicable Criteria and Related Research
--'Global Financial Institutions Rating Criteria'(Aug. 15, 2012);
--'Finance and Leasing Companies Criteria'(Dec. 11, 2012);
--'Rating FI Subsidiaries and Holding Companies' (Aug. 10, 2012).
Applicable Criteria and Related Research:
Global Financial Institutions Rating Criteria
Finance and Leasing Companies Criteria
Rating FI Subsidiaries and Holding Companies