Moody's: Toyota Motor Credit

Moody's Investors Service said it affirmed the Aa3 senior unsecured long-term ratings of Toyota Motor Credit Corp. (TMCC) and its supported subsidiaries and changed the outlook to stable from negative.

Moody's also affirmed the Prime-1 short-term rating of TMCC and its wholly owned subsidiary Toyota Credit de Puerto Rico Corp.

The action is in conjunction with the agency's affirmation of the long-term ratings of Toyota Motor Corp. (Toyota) and subsidiaries and revision of the outlook to stable from negative.

Moody's said the ratings and outlook of TMCC and supported subsidiaries are equalized with those of ultimate parent Toyota. This is due to:

• The strategic importance of TMCC to Toyota and Toyota's strong incentive to provide support to TMCC on a timely basis;

• The strength of the Credit Support Agreement structure; the Support Agreement (Toyota to Toyota Financial Services Corp. to TMCC), though not a guarantee, is considered strong, as it includes quantifiable measures of support (100% ownership maintenance, minimum tangible net worth maintenance) and is structured in a way that makes payment interruption unlikely; and

• Toyota has demonstrated its willingness and ability to maintain TMCC in satisfactory overall condition and this is expected to continue going forward.

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