S&P: American Honda Finance outlook stable

Standard & Poor's said it revised the outlook on American Honda Finance Corp. to stable from positive and affirmed its A+ corporate credit rating and senior unsecured debt and A-1 commercial paper.

The change was made in connection with a revision to parent company Honda Motor Co.'s outlook, which was also changed to stable from positive.

The agency said the revised outlook on Honda and its related entities reflects the rapidly weakening conditions of most major global automotive markets, which make an upgrade in the next 12 to 18 months increasingly unlikely.

The ratings continue to reflect Honda's strong product competitiveness as well as its improving market presence in North America and other major global markets such as Asia and Europe, S&P said.

However, the company's highly disproportionate reliance on earnings from North America, its exposure to fluctuations in foreign exchange rates as a result of its high proportion of overseas sales and its weak market position in the Japanese domestic market partially offset its strengths, the agency added.

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