Moody’s changes Honda view to negative

Moody’s Investors Service said it changed the outlook for Honda Motor Co. to negative from under review and confirmed the company’s A3 rating. The confirmation extends to Honda’s captive finance subsidiaries.

“The negative outlook reflects the downside risk from the pandemic over the next 12 to 18 months. The outlook also incorporates the potential that the company’s sales could be weaker than Moody’s current forecasts. Moody’s assumes unit sales for the global automotive sector to decline by 20% in 2020 and rebounding by 11.5% in 2021,” the agency said in a press release.

The outlook revision and rating confirmation finish the review started on March 26, Moody’s said.

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