(The following statement was released by the rating agency)
TOKYO, Jan 23 - Moody's Investors Service has assigned its Aaa long-term rating to Toyota Finance Corporation's (TFC) Yen 50 billion bonds due 2009. The rating is based on a credit support agreement between TFC and Toyota Financial Services Corporation (TFS), as well as a similar agreement TFS has with Toyota Motor Corp (Toyota), whose senior debt is rated Aaa.
Toyota's Aaa long-term rating is, in turn, based on the expectation that the company will maintain a globally competitive cost position as well as strong and consistent financial fundamentals, even during industry cycle downturns.
Toyota will also maintain its strong capital structure and high degree of balance sheet liquidity. Toyota continues to update the quality of its models, enhancing its brand image and increasing its global market share.
It is Moody's view that the competitive pressures it faces are likely to continue. However, the widening breadth of Toyota's product line, its strong brand image and its formidable R&D program should support a successful long-term new product strategy, which should, in turn, allow it to sustain and increase its global sales and market share, even against the backdrop of a slowing world economy.
Toyota has consistently maintained a strong balance sheet, bolstered by large cash positions and good access to debt and equity markets. Moody's believes that Toyota will preserve its very strong degree of balance sheet liquidity, meaning it can withstand any difficulties the industry may experience.
Toyota Finance Corporation supports Toyota's sales activities in Japan through its wholesale and retail financing products and is a wholly owned subsidiary of TFS, itself a wholly owned Toyota subsidiary. Toyota Motor Corporation, headquartered in Toyota City, is the world's third largest automobile manufacturer.