Fitch to give Harley-Davidson Financial notes A

Fitch Ratings said it expect to assign an A rating to Harley-Davidson Financial Services, Inc.'s proposed issuance of at least $1 billion in aggregate of senior unsecured medium-term notes.

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. (A/stable).

Fitch said Harley-Davidson Financial’s ratings reflect its close operating relationship and support agreement with Harley-Davidson, under which the parent must maintain Harley-Davidson Financial’s fixed-charge coverage at 1.25 times and its minimum net worth at $40 million.

The ratings of both entities are linked, as Fitch believes that the finance company is a core subsidiary of the parent as demonstrated by the explicit and implicit level of support between the two entities.

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