TRIS Rating Co., Ltd. has affirmed a "AAA" rating of the proposed Bt2,000 million guaranteed debentures (HLTC07OA) issued under the medium-term debenture program of Honda Leasing (Thailand) Co., Ltd. ("HLTC" or "Issuer") with "stable" outlook. These debentures are guaranteed by HLTC's parent company, Honda Automobile (Thailand) Co., Ltd. ("HATC" or "Guarantor"), which is a subsidiary of Honda Motor Co., Ltd. (HMC), a company rated "A+/Stable" by Standard and Poor's (S&P) and "A1/Stable" by Moody's Investors Service (Moody's).
TRIS Rating said that the rating of these debentures reflects the unconditional and irrevocable guarantee by HATC, whose creditworthiness is enhanced by the HATC's keep well agreement with provided by its ultimate parent, HMC. TRIS Rating takes into consideration the keep well agreement between HATC and HMC, the strategic importance of HATC as a subsidiary of HMC, the strong position of HATC in the Thai automotive industry, HATC's strengthening financial profile and its proven ability to meet the global standard of the Honda group although Although HATC's product line is somewhat limited, because the company strategically focuses on the passenger car and off-road passenger vehicle (OPV) segments of the automobile market.
The "stable" outlook of the guaranteed debentures of HLTC reflects the credit profile of its ultimate parent company, HMC, which receives "A+/Stable" and "A1/Stable" ratings from S&P and Moody's, respectively.
TRIS Rating said under the keep well agreement, the ultimate parent company of HATC, HMC, shall: (1) own and hold, directly and indirectly, the legal title to and beneficial interest in, at least 80% of all the issued and outstanding shares of stock of HATC; (2) cause HATC to have a positive consolidated tangible net worth; and, (3) ensure that HATC has sufficient liquidity and funds to punctually meet its payment obligations associated with the debt described in the keep well agreement. In addition, any claims on HMC arising from any funds provided by HMC to HATC are subordinated to the claims of debenture holders. So long as any debt shall be outstanding, this agreement shall not be modified, amended or terminated in any manner which may have any adverse effect upon the debenture holders unless the debenture holders and the representatives of the debenture holders have consented thereto in writing. The keep well agreement is governed by Japanese law. Though the keep well agreement is not a guarantee, TRIS Rating believes that with the high credit quality of HMC and the strategic importance of HATC to HMC, HMC will provide sufficient financial support to HATC to ensure HATC's obligations are met. -- End
Honda Leasing (Thailand) Co., Ltd. (HLTC) Issue Rating: HLTC07OA: Bt2,000 million guaranteed debentures under medium-term Affirmed at AAA debenture program due 2007 Rating Outlook: Stable
TRIS Rating said that the rating of these debentures reflects the unconditional and irrevocable guarantee by HATC, whose creditworthiness is enhanced by the HATC's keep well agreement with provided by its ultimate parent, HMC. TRIS Rating takes into consideration the keep well agreement between HATC and HMC, the strategic importance of HATC as a subsidiary of HMC, the strong position of HATC in the Thai automotive industry, HATC's strengthening financial profile and its proven ability to meet the global standard of the Honda group although Although HATC's product line is somewhat limited, because the company strategically focuses on the passenger car and off-road passenger vehicle (OPV) segments of the automobile market.
The "stable" outlook of the guaranteed debentures of HLTC reflects the credit profile of its ultimate parent company, HMC, which receives "A+/Stable" and "A1/Stable" ratings from S&P and Moody's, respectively.
TRIS Rating said under the keep well agreement, the ultimate parent company of HATC, HMC, shall: (1) own and hold, directly and indirectly, the legal title to and beneficial interest in, at least 80% of all the issued and outstanding shares of stock of HATC; (2) cause HATC to have a positive consolidated tangible net worth; and, (3) ensure that HATC has sufficient liquidity and funds to punctually meet its payment obligations associated with the debt described in the keep well agreement. In addition, any claims on HMC arising from any funds provided by HMC to HATC are subordinated to the claims of debenture holders. So long as any debt shall be outstanding, this agreement shall not be modified, amended or terminated in any manner which may have any adverse effect upon the debenture holders unless the debenture holders and the representatives of the debenture holders have consented thereto in writing. The keep well agreement is governed by Japanese law. Though the keep well agreement is not a guarantee, TRIS Rating believes that with the high credit quality of HMC and the strategic importance of HATC to HMC, HMC will provide sufficient financial support to HATC to ensure HATC's obligations are met. -- End
Honda Leasing (Thailand) Co., Ltd. (HLTC) Issue Rating: HLTC07OA: Bt2,000 million guaranteed debentures under medium-term Affirmed at AAA debenture program due 2007 Rating Outlook: Stable