Fitch to give Harley-Davidson Financial notes A

Fitch Ratings said it expects to assign an A rating to Harley-Davidson Financial Services, Inc.'s proposed $500 million five-year medium-term note issuance, subject to receipt of final documents conforming to information already received.

The fixed rate of interest will be determined at the time of issuance.

Harley-Davidson Financial is the captive finance subsidiary of Harley-Davidson, Inc. (HOG, A, stable), a manufacturer of motorcycles.

Harley-Davidson Financial's ratings are linked to those of its parent, as Fitch believes the captive is a core subsidiary of HOG, which is evidenced by explicit and demonstrated support between the two entities. This is reflected by its close operating relationship with HOG and by a support agreement under which HOG must maintain Harley-Davidson Financial’s fixed-charge coverage at 1.25 times and its minimum net worth at $40 million.

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