The events currently surrounding Toyota Motor Corp. do not immediately affect the ratings of any North American or European ABCP rated by Fitch Ratings.
The rating agency recently placed Toyota’s ‘A+’ long-term foreign and local currency Issuer Default Ratings (IDR) and senior unsecured ratings, and ‘F1+’ short-term foreign and local currency IDRs on Rating Watch Negative.
Fitch’s rating actions on Toyota were triggered by the automaker’s Jan. 26 announcement that it was suspending sales and production of eight models in that U.S. market. There models were recently became part of a safety-related recall resulting from problems with the pedal mechanism.
Given these recent events, Fitch has reviewed all of its rated North American and European ABCP conduits and identified two instances of direct exposure to the Japanese auto manufacturer financed in one conduit. The identified exposures totaled $39.4 million as of November 2009, and represent 3.4% of the conduit’s overall outstandings.
This conduit’s rating has not been affected as a result of these holdings, as the deals continue to perform within the rating agency’s expectations. The program also benefits from over 15% program-wide credit enhancement.
