Moody's rates Toyota Industries A1

Moody's Investors Service said it assigned an A1 issuer rating to Toyota Industries Corp.

The outlook is stable.

The rating reflects its leading global market positions in lift trucks and car air-conditioning compressors that support its sound earnings and financial position, Moody's said.

The rating also considers the cyclicality in demand for automobiles and materials handling equipment, which could cause periodic fluctuations in margins, as well as both the benefits and potential vulnerability from the company's high dependence on its main customer, Toyota Motor Corp., the agency said.

The company's strong market positions in lift trucks and car air-conditioning compressors sustain durable cash flow, Moody's said.

The company is a top manufacturer of lift trucks, the agency said, and its material handling equipment business accounts for the majority of its operating profit.

Toyota Industries has the capacity to generate free cash flow and maintains a sizable cash balance for liquidity, Moody's added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.