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Fitch upgrades ratings for Toyota Motor Credit, affiliates

Fitch Ratings upgraded the long-term issuer default ratings for Plano, Texas-based Toyota Motor Credit Corp. and its affiliates, Toyota Motor Finance (Netherlands) BV, Toyota Credit Canada Inc., Toyota Finance Australia Ltd. and Germany-based Toyota Kreditbank GmbH, to A+ from A.

The rating agency also affirmed the five companies' F1 short-term issuer default ratings. The ratings outlook is stable.

According to Fitch, aside from the institutional support considerations, Toyota Motor Credit's "strong asset quality, historically strong profitability and a predominately unsecured funding profile" support its credit profile.

On the other hand, Fitch noted that credit constraints include the company's elevated leverage compared to stand-alone finance and leasing companies, as well as its heavy reliance on commercial paper funding.