Bangkok--28 Apr--TRIS Rating
TRIS Rating Co., Ltd. announces today that the ratings and outlooks of the medium-term and short-term guaranteed debentures issued by Toyota Leasing (Thailand) Co., Ltd. (TLT) have not been affected by the change in rating outlook of TLT’s ultimate parent company, Toyota Motor Corporation (TMC).
TRIS Rating said, TMC’s rating outlook has been revised to “negative” from “stable” on 25 April 2011 by Standard and Poor’s (S&P), while the rating remains affirmed at “AA-”. TMC was downgraded from “AA” to “AA-” on 4 March 2011. The rating action on TMC’s outlook by S&P reflects the expectation that TMC is likely to experience a deterioration in its operating and financial performance in fiscal year 2012, ending 31 March 2012. The deterioration is due to significant production cuts resulting from parts shortages following the earthquakes and tsunami in Japan on 11 March 2011. In addition, S&P expects the extended production cuts may erode TMC’s market share and competitive position in the longer term.
TMC’s company rating and issue ratings of its long-term senior debentures have been “under review for possible downgrade” by Moody’s Investors Service (Moody’s) since 6 April 2011, replacing the earlier “negative” outlook. The action reflects Moody’s view that TMC’s financial and operating performance will worsen in the aftermath of the earthquakes and tsunami and from the result of supply chain disruptions.
TRIS Rating said, although TMC’s rating outlooks were changed to “negative” by S&P and put “under review for possible downgrade” by Moody’s, TMC’s current company ratings of “AA-” assigned by S&P and “Aa2” by Moody’s still reflect its relatively strong credit profile when compared with the “AAA” national scale rating in TRIS Rating’s database of rated companies in Thailand. Therefore, TRIS Rating affirms the ratings of TLT’s guaranteed debentures at “AAA” for medium-term debentures and “T1+” for short-term debentures with “stable” outlook, reflecting the unconditional and irrevocable guarantee by Toyota Motor Finance (Netherlands) B.V., (TMF), whose rating is based on the credit strength of TMC.