TRIS Rating Assigns "AAA" Rating With "Stable" Outlook to Guaranteed Debentures of "Honda Leasing (Thailand)" Under MTD Program

TRIS Rating Co., Ltd. has assigned a "AAA" rating to the proposed Bt2,000 million guaranteed debentures issued under the medium-term debenture (MTD) program of Honda Leasing (Thailand) Co., Ltd. ("HLTC" or "Issuer"). The rating will become effective once the letter of guarantee and the keep well agreement are completed. These debentures are guaranteed by its parent company, Honda Automobile (Thailand) Co., Ltd. ("HATC" or "Guarantor"), which is a subsidiary of Honda Motor Co., Ltd. (HMC), a company rated "A+" by Standard and Poor's (S&P) and "A1" by Moody's Investors Service (Moody's). The rating of these debentures reflects the unconditional and irrevocable guarantee by HATC, whose creditworthiness is enhanced by HATC's keep well agreement with its ultimate parent, HMC. TRIS Rating takes into consideration the strong keep well agreement between HATC and HMC, the strong position of the Guarantor in the Thai automotive industry, HATC's strengthening financial profile and its proven ability to meet the global standard of the Honda group. Although HATC's product line is somewhat limited compared with its major competitor, the company strategically focuses on the passenger car and off-road passenger vehicle (OPV) segments.
TRIS Rating has also assigned the "stable" outlook to HLTC's guaranteed debentures. The outlook reflects the credit profile of HLTC's ultimate parent company, HMC, which received "A+/Stable" and "A1/Stable" ratings from S&P and Moody's, respectively. -- End
Honda Leasing (Thailand) Co., Ltd. (HLTC) Issue Rating: Up to Bt2,000 million guaranteed debentures under medium-term debenture program due 2007 AAA Rating Outlook: Stable