TRIS Rating Co., Ltd. has affirmed the ratings of Toyota Leasing (Thailand) Co., Ltd.’s (TLT or Issuer) issues of Bt27,600 million in guaranteed debentures under the Bt30,000 million medium-term debenture program at “AAA”, and has affirmed the rating of TLT’s issues of Bt10,000 million in guaranteed debentures under the short-term program at “T1+”. At the same time, TRIS Rating has assigned a “AAA” rating to TLT’s proposed issues of up to Bt2,400 million in guaranteed debentures under the medium-term program. The outlook remains “stable”. Both the medium- and short-term issues 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 100% held by Toyota Motor Corporation (TMC), the ultimate parent company. All three companies, TMF, TFS and TMC are rated at “AA” with “negative’ outlook by Standard & Poor’s (S&P), and at “Aa1” with “negative’ outlook by Moody’s Investors Service (Moody’s), with short-term issue ratings at “A-1+” by S&P and at “Prime-1” by Moody’s, respectively.
TRIS Rating reported that the ratings of TLT’s medium- and short-term debenture programs 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 bond or 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 the Dutch law and is unconditional and irrevocable. It provides for punctual payment to the debenture holders of all sums payable by TLT. For the guarantee of both medium- and short-term debenture programs, the obligations of TMF rank at least pari passu with all other present and future unsecured and unsubordinated indebtedness of TMF. 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.
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 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; (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.
TRIS Rating said about the “stable” outlook of TLT that it reflects the creditworthiness of TLT’s ultimate parent, TMC. TMC’s ability to maintain its strong position in major markets has been supported by its extensive geographic and product diversification. However, TMC’s financial profile in FY2009 has been pressured by a sharp drop in automobile demand in the US and Europe. On 6 February 2009, TMC’s ratings were downgraded by S&P to “AA+/Negative” from “AAA/Negative”, and by Moody’s to “Aa1/Negative” from “Aaa/Negative”. TMC’s rating was further downgraded to “AA/Negative” by S&P on 8 May 2009, while the rating assigned by Moody’s was still maintained. The downgrade followed the release of TMC’s FY2009 performance, which was weaker than S&P’s expectation. However, TMC still has a relatively strong credit profile when compared with the “AAA” national scale rating in TRIS Rating’s portfolio. -- End
- TLT097A: Bt1,500 million guaranteed debentures due 2009 Affirmed at AAA - TLT09NA: Bt1,500 million guaranteed debentures due 2009 Affirmed at AAA - TLT09DA: Bt2,000 million guaranteed debentures due 2009 Affirmed at AAA - TLT102A: Bt900 million guaranteed debentures due 2010 Affirmed at AAA - TLT104A: Bt3,000 million guaranteed debentures due 2010 Affirmed at AAA - TLT107A: Bt1,500 million guaranteed debentures due 2010 Affirmed at AAA - TLT108A: Bt1,700 million guaranteed debentures due 2010 Affirmed at AAA - TLT10NA: Bt3,100 million guaranteed debentures due 2010 Affirmed at AAA - TLT10NB: Bt1,200 million guaranteed debentures due 2010 Affirmed at AAA - TLT112A: Bt2,900 million guaranteed debentures due 2011 Affirmed at AAA - TLT112B: Bt4,000 million guaranteed debentures due 2011 Affirmed at AAA - TLT114A: Bt3,000 million guaranteed debentures due 2011 Affirmed at AAA - TLT124A: Bt1,000 million guaranteed debentures due 2012 Affirmed at AAA - TLT128A: Bt1,800 million guaranteed debentures due 2012 Affirmed at AAA - Up to Bt2,400 million guaranteed debentures due within 2014 AAA Bt10,000 million guaranteed debentures under short-term debenture program (1/2007) Affirmed at T1+ Rating Outlook: Stable
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