...Support Driven Ratings: American Honda Finance Corporation's (AHFC) ratings and Outlook are equalized with and linked to those of its parent, Honda Motor Co., Ltd (HMC; A/F1), as Fitch Ratings considers AHFC a core subsidiary of HMC. This view is supported by the high percentage of HMC's U.S. and Canadian sales that are financed by AHFC, strong operational and financial linkages between the two entities, shared branding and a support (or keepwell) agreement provided directly by HMC to AHFC. Stable Asset Quality: AHFC reported a consolidated net chargeoff rate of 0.47% for the nine months ended Dec. 31, 2024 (3Q25), slightly above the 0.44% reported a year prior. Delinquencies of 60 days or more on finance receivables were 0.41% at fiscal 3Q25, up from 0.38% a year ago. While AHFC's credit metrics remain strong relative to auto captive peers, Fitch expects credit losses will increase modestly over the near to medium term as consumer credit performance and used vehicle values continue to...
