Moody’s: Nissan Canada Financial notes A2

Moody's Japan KK said it assigned an A2 rating to Nissan Canada Financial Services Inc.’s C$150 million series B senior unsecured floating-rate notes due 2019 and C$350 million series C senior unsecured fixed-rate notes due 2020.

The outlook is stable.

Nissan Canada Financial is a wholly owned overseas subsidiary of Nissan Canada Inc. (NCI, unrated), which engages in automobile distribution and leasing business and is ultimately 100% owned by Nissan Motor Co., Ltd. (A2 stable).

Moody’s said the credit quality of the notes is enhanced by a keepwell agreement between Nissan Motor and Nissan Canada Financial, according to which Nissan Motor agrees to maintain: (a) its direct or indirect ownership of Nissan Canada Financial; (b) minimal tangible net worth; and (c) sufficient liquidity for Nissan Canada Financial to meet its payment obligations.

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