(The following was released by the rating agency)
TOKYO (Standard & Poor's) April 17, 2012--Standard & Poor's
Ratings Services today assigned its 'AA-' debt ratings to
Japan-based Toyota Finance Corp.'s (TFC; AA-/Negative/A-1+)
JPY10 billion, 0.272%, series 48 domestic senior unsecured bonds
due June 19, 2015, and its JPY15 billion, 0.415%, series 49
domestic senior unsecured bonds due June 20, 2017.
TFC is a wholly owned subsidiary of Toyota Financial
Services Corp. (TFS; AA-/Negative/A-1+). TFS, in turn, is a
wholly owned subsidiary of Toyota Motor Corp.
(AA-/Negative/A-1+) and oversees the management of Toyota
Motor's financial subsidiaries, including TFC. TFC provides a
broad range of finance products to customers in Japan.
Given TFC's essential marketing role in Japan as Toyota
group's captive finance company, the ratings on the company
reflect Toyota Motor's credit strength. Accordingly, its
ultimate parent, Toyota Motor, has a very strong economic
incentive to maintain the company's financial soundness and
competitiveness, in our view, as is reflected in credit support
agreements between Toyota Motor and TFS and between TFS and TFC.
The ratings on Toyota Motor reflect its strong competitive
position, extensive geographic and product diversity, minimal
financial risk profile, technological leadership, and close
relationships with highly competitive and financially strong
Toyota group suppliers. The potential for overproduction in
Japan and a persistently strong yen to prevent continuing
improvement in Toyota Motor's profitability partially offsets
these strengths. The ratings also reflect intense competition in
the global auto industry.
RELATED CRITERIA AND RESEARCH
General Criteria: Principles Of Credit Ratings, Feb. 16,
2011 2008 Corporate Criteria: Analytical Methodology, April 15,