...Ratings Largely Stable: The credit profiles of captive finance companies (captives) and their ultimate corporate parent companies have largely remained stable and in some cases improved since Fitch`s last report published in May 2013. Fitch currently has two captives on Positive Rating Outlook and five on Stable Rating Outlook. Rise in Short-Term Debt: After sharp declines in usage of short-term debt post-crisis, issuance of short-term debt such as commercial paper is increasing, with the proportion of short-term debt to total debt approaching pre-crisis levels. Fitch believes that a reasonable level of short-term debt is manageable for captives who have relatively shorter dated assets. However, a material increase from current levels could adversely impact parent and captive ratings. Lending Growth Continues: Lending growth in captives` portfolios continued in 2013 driven by increased demand from a gradually improving global economy and slight loosening in industry lending standards. Average...
