Fitch cuts Harley-Davidson

Fitch Ratings said it downgraded to A+ from AA- the issuer default rating of Harley-Davidson Inc., Harley-Davidson Financial Services, Inc. and Harley-Davidson Funding Corp.

The agency also downgraded Harley-Davidson Financial's short-term issuer default rating to F1 from F1+ and the senior unsecured rating to A+ from AA- and Harley-Davidson Funding's short-term issuer default rating to F1 from F1+ and its commercial paper to F1 from F1+.

The outlook is negative.

Fitch said it downgraded the companies because of the reduction in cash balances due to large share repurchases.

The A+ rating reflects strong cash generation from its dominant market position in the U.S., expanding international presence, significant distribution network and good financial flexibility, the agency said.

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