Fitch rates American Honda Finance A

Fitch Ratings said it gave A ratings to American Honda Finance Corp. and its senior unsecured debt.

“The ratings for AHFC are equalized with and linked to those of its parent, Honda Motor Co. (HMC), as Fitch considers AHFC a core subsidiary of HMC. This is supported by the high percentage of HMC's U.S. and Canada sales financed by AHFC, strong operational and financial linkages between the two companies, shared branding, and a support (keepwell) agreement provided directly by HMC to AHFC,” the agency said in a press release.

Fitch also noted the company’s low leverage compared to auto captive finance peers, and a predominately unsecured funding profile.

“Credit constraints include weaker balance sheet liquidity and coverage of short-term debt maturities,” Fitch said.

The outlook is stable.

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