TRIS Rating Co., Ltd. has affirmed the ratings of Toyota Leasing (Thailand) Co., Ltd.’s (TLT or Issuer) guaranteed debentures under the Bt30,000 million medium-term debenture program at “AAA”, and has affirmed the ratings of TLT’s guaranteed debentures under the short-term programs at “T1+”. At the same time, TRIS Rating has assigned a “AAA” rating to TLT’s proposed up to Bt5,000 million guaranteed debentures under the medium-term program. The rating outlook is “stable”. Both the short-term and medium-term debentures are guaranteed by Toyota Motor Finance (Netherlands) B.V., (TMF or Guarantor). TMF is a wholly-owned subsidiary of Toyota Financial Service Corporation (TFS), which is wholly owned by Toyota Motor Corporation (TMC), the ultimate parent company. All three companies, TMF, TFS and TMC are rated “AAA” and “Aaa” by S&P and Moody’s, respectively.
TRIS Rating reported that the ratings of TLT’s debentures reflect the unconditional and irrevocable guarantee by TMF, whose rating is based on the credit strength of TMC. Under this guarantee structure, TMC has provided a Credit Support Agreement (CSA) to TFS, which, in turn, provided a CSA to TMF. Under the terms of the CSA, TMC will provide sufficient liquidity for the bond, debenture, and commercial paper obligations of both subsidiaries, TFS and TMF. TMC will also provide sufficient liquidity for TMF’s guarantee obligations. The guarantee made by TMF is governed by Dutch law and is unconditional and irrevocable. It provides for punctual payment to the debenture holders of all sums payable by TLT. The obligations of TMF under this guarantee rank at least pari passu with all other present and future unsecured and unsubordinated indebtedness of TMF. Therefore, this guarantee ensures that the credit risk of the debentures is the same as the credit risk of the senior unsecured debt of the Guarantor. The guarantee cannot be amended or terminated without the consent of both the debenture holders’ representative and the Guarantor, and the consent of the debenture holders’ representative is contingent upon a majority vote of the debenture holders. To the extent that Dutch law is applicable, any of the guarantee provisions shall be binding on the assigns or successors of TMF.
However, TRIS Rating said that the Guarantor will not be under any obligation to make payment for the Issuer’s failure to pay as a result of any of the following actions by any Thai government agency:
(1) interruption of payment by causing the Issuer to be unable to transfer monies or to convert foreign currency to the Registrar or debenture holders to pay debt obligations; (2) causing the transfer of majority shareholding in, or control over, the Issuer to a third-party not associated with the Toyota Group; (3) expropriation or nationalization of at least 10% of the net value of hire-purchase receivables of the Issuer and its subsidiaries; or (4) expropriation or nationalization that has the effect of preventing the Issuer and its subsidiaries from carrying on business. TRIS Rating believes that the above events are highly unlikely to occur.
The “stable” outlook reflects the creditworthiness of TLT’s ultimate parent, TMC. TMC’s ability to maintain stable earnings has been supported by its strong business franchise with extensive geographic and product diversification. In addition, the efficient production capability and technological innovation of the group allow TMC to consistently generate favourable financial performance and sustain its leading market position, despite the cyclical nature of demand and the intense competition in the automotive industry, said TRIS Rating. -- End
Toyota Leasing (Thailand) Co., Ltd. (TLT)
Issue Ratings:
Bt30,000 million guaranteed debentures under medium-term debenture program:
- TLT07NA: Bt3,000 million guaranteed debentures due 2007 Affirmed at AAA
- TLT084A: Bt3,000 million guaranteed debentures due 2008 Affirmed at AAA
- TLT087A: Bt2,000 million guaranteed debentures due 2008 Affirmed at AAA
- TLT088A: Bt2,000 million guaranteed debentures due 2008 Affirmed at AAA
- TLT08DA: Bt2,000 million guaranteed debentures due 2008 Affirmed at AAA
- TLT094A: Bt3,000 million guaranteed debentures due 2009 Affirmed at AAA
- TLT09DA: Bt2,000 million guaranteed debentures due 2009 Affirmed at AAA
- TLT104A: Bt3,000 million guaranteed debentures due 2010 Affirmed at AAA
- Up to Bt5,000 million guaranteed debentures due within 2012 AAA
Bt10,000 million guaranteed debentures under short-term debenture program (1/2006) Affirmed at T1+
Bt10,000 million guaranteed debentures under short-term debenture program (1/2007) Affirmed at T1+
Rating Outlook: Stable
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Copyright 2007, TRIS Rating Co., Ltd. All rights reserved. Any unauthorized use, disclosure, copying, republication, further transmission, dissemination, redistribution or storing for subsequent use for any purpose, in whole or in part, in any form or manner or by any means whatsoever, by any person, of the credit rating reports or information is prohibited. The credit rating is not a statement of fact or a recommendation to buy, sell or hold any debt instruments. It is an expression of opinion regarding credit risks for that instrument or particular company. The opinion expressed in the credit rating does not represent investment or other advice and should therefore not be construed as such. Any rating and information contained in any report written or published by TRIS Rating has been prepared without taking into account any recipient’s particular financial needs, circumstances, knowledge and objectives. Therefore, a recipient should assess the appropriateness of such information before making an investment decision based on this information. Information used for the rating has been obtained by TRIS Rating from the company and other sources believed to be reliable. Therefore, TRIS Rating does not guarantee the accuracy, adequacy, or completeness of any such information and will accept no liability for any loss or damage arising from any inaccuracy, inadequacy or incompleteness. Also, TRIS Rating is not responsible for any errors or omissions, the result obtained from, or any actions taken in reliance upon such information.
TRIS Rating reported that the ratings of TLT’s debentures reflect the unconditional and irrevocable guarantee by TMF, whose rating is based on the credit strength of TMC. Under this guarantee structure, TMC has provided a Credit Support Agreement (CSA) to TFS, which, in turn, provided a CSA to TMF. Under the terms of the CSA, TMC will provide sufficient liquidity for the bond, debenture, and commercial paper obligations of both subsidiaries, TFS and TMF. TMC will also provide sufficient liquidity for TMF’s guarantee obligations. The guarantee made by TMF is governed by Dutch law and is unconditional and irrevocable. It provides for punctual payment to the debenture holders of all sums payable by TLT. The obligations of TMF under this guarantee rank at least pari passu with all other present and future unsecured and unsubordinated indebtedness of TMF. Therefore, this guarantee ensures that the credit risk of the debentures is the same as the credit risk of the senior unsecured debt of the Guarantor. The guarantee cannot be amended or terminated without the consent of both the debenture holders’ representative and the Guarantor, and the consent of the debenture holders’ representative is contingent upon a majority vote of the debenture holders. To the extent that Dutch law is applicable, any of the guarantee provisions shall be binding on the assigns or successors of TMF.
However, TRIS Rating said that the Guarantor will not be under any obligation to make payment for the Issuer’s failure to pay as a result of any of the following actions by any Thai government agency:
(1) interruption of payment by causing the Issuer to be unable to transfer monies or to convert foreign currency to the Registrar or debenture holders to pay debt obligations; (2) causing the transfer of majority shareholding in, or control over, the Issuer to a third-party not associated with the Toyota Group; (3) expropriation or nationalization of at least 10% of the net value of hire-purchase receivables of the Issuer and its subsidiaries; or (4) expropriation or nationalization that has the effect of preventing the Issuer and its subsidiaries from carrying on business. TRIS Rating believes that the above events are highly unlikely to occur.
The “stable” outlook reflects the creditworthiness of TLT’s ultimate parent, TMC. TMC’s ability to maintain stable earnings has been supported by its strong business franchise with extensive geographic and product diversification. In addition, the efficient production capability and technological innovation of the group allow TMC to consistently generate favourable financial performance and sustain its leading market position, despite the cyclical nature of demand and the intense competition in the automotive industry, said TRIS Rating. -- End
Toyota Leasing (Thailand) Co., Ltd. (TLT)
Issue Ratings:
Bt30,000 million guaranteed debentures under medium-term debenture program:
- TLT07NA: Bt3,000 million guaranteed debentures due 2007 Affirmed at AAA
- TLT084A: Bt3,000 million guaranteed debentures due 2008 Affirmed at AAA
- TLT087A: Bt2,000 million guaranteed debentures due 2008 Affirmed at AAA
- TLT088A: Bt2,000 million guaranteed debentures due 2008 Affirmed at AAA
- TLT08DA: Bt2,000 million guaranteed debentures due 2008 Affirmed at AAA
- TLT094A: Bt3,000 million guaranteed debentures due 2009 Affirmed at AAA
- TLT09DA: Bt2,000 million guaranteed debentures due 2009 Affirmed at AAA
- TLT104A: Bt3,000 million guaranteed debentures due 2010 Affirmed at AAA
- Up to Bt5,000 million guaranteed debentures due within 2012 AAA
Bt10,000 million guaranteed debentures under short-term debenture program (1/2006) Affirmed at T1+
Bt10,000 million guaranteed debentures under short-term debenture program (1/2007) Affirmed at T1+
Rating Outlook: Stable
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Copyright 2007, TRIS Rating Co., Ltd. All rights reserved. Any unauthorized use, disclosure, copying, republication, further transmission, dissemination, redistribution or storing for subsequent use for any purpose, in whole or in part, in any form or manner or by any means whatsoever, by any person, of the credit rating reports or information is prohibited. The credit rating is not a statement of fact or a recommendation to buy, sell or hold any debt instruments. It is an expression of opinion regarding credit risks for that instrument or particular company. The opinion expressed in the credit rating does not represent investment or other advice and should therefore not be construed as such. Any rating and information contained in any report written or published by TRIS Rating has been prepared without taking into account any recipient’s particular financial needs, circumstances, knowledge and objectives. Therefore, a recipient should assess the appropriateness of such information before making an investment decision based on this information. Information used for the rating has been obtained by TRIS Rating from the company and other sources believed to be reliable. Therefore, TRIS Rating does not guarantee the accuracy, adequacy, or completeness of any such information and will accept no liability for any loss or damage arising from any inaccuracy, inadequacy or incompleteness. Also, TRIS Rating is not responsible for any errors or omissions, the result obtained from, or any actions taken in reliance upon such information.