S&P lifts Honda to stable

Standard & Poor's said it revised to stable from negative the outlook on the long-term corporate credit rating on Honda Motor Co. Ltd. and related entities, including American Honda Finance Corp. and Honda Canada Finance Inc.

The agency also said it affirmed the A+ long-term and A-1 short-term corporate credit ratings on Honda and related entities, as well as its A+ long-term and A-1 short-term debt ratings on the related entities.

The outlook reflects a view that Honda's operating performance has bottomed out in fiscal 2011 and is returning to a steady growth path driven by a rapid recovery in production and sales of automobiles, S&P said.

While the strong yen against other major currencies is likely to continue to pressure Honda's profitability, S&P said it believes the automaker should continue recovering its profitability over the next two years.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.