Moody's rates Toyota Argentina notes Ba2

Moody's Investors Service said it assigned a Ba3 global local-currency senior debt rating and a Aaa.ar national scale local-currency debt rating to Toyota Compania Financiera de Argentina SA's expected class VI issuance of up to 150 million in Argentine pesos.

The issuance, which will be due in one year, is under Toyota's 200 million in Argentine pesos short-term senior unsecured program.

All of the ratings have a stable outlook.

The ratings are constrained by challenges related to Argentina's operating environment, which remain challenging despite various market-friendly policy reforms implemented by the new administration that are expected to result in a return to economic growth and a continued decline in inflation this year, Moody's said.

These environmental challenges outweigh the company's sound financial fundamentals, the agency said.

The ratings also consider the company’s monoline business model dedicated to the financing of Toyota vehicles and the increasing level of competition within the car-financing industry in Argentina, Moody's said.

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