Fitch affirms Honda

Fitch Ratings said it affirmed Honda Motor Co. Ltd.'s long-term foreign- and local-currency issuer default ratings at A and its short-term foreign- and local-currency issuer default ratings at F1.

The agency also said it affirmed its senior unsecured debt rating at A.

Fitch also affirmed American Honda Finance Corp.'s short-term foreign-currency issuer default rating at F1 and commercial-paper at F1.

The outlook is stable.

The ratings reflect an expectation that the company's automobile division will show a sharp recovery in the financial year ending March 2013 as production normalizes after experiencing major disruption in 2012, Fitch said.

The ratings also consider a stronger-than-expected recovery of the U.S. automobile market and continued robust growth in Honda's motorcycle division, the agency said.

Fitch noted that the company's success in regaining U.S. market share also hinges on the success of its new models amid intensifying competition.

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