Moody's rates Honda bonds A1

Moody's Investors Service said it assigned an A1 rating to the bonds issued by Honda Finance Co., Ltd., which consists of a ¥30 billion series 16 bonds due 2015.

The outlook is stable.

This is a takedown from the company's ¥150 billion domestic shelf registration.

A keep-well agreement with Honda Motor Co., Ltd. supports the issuance, Moody's said.

Under the terms of the agreement, Honda will maintain its 100% ownership of Honda Finance, the agency said.

Honda will further ensure that Honda Finance retains a tangible net worth of at least ¥10 million and that it has sufficient liquidity to repay borrowings, the agency added.

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