Honda Motor Co., Ltd.: Update to credit analysis - Moody's Global Credit Research

Honda Motor Co., Ltd.: Update to credit analysis

Honda Motor Co., Ltd.: Update to credit analysis - Moody's Global Credit Research
Honda Motor Co., Ltd.: Update to credit analysis
Published Apr 25, 2024
11 pages (6411 words) — Published Apr 25, 2024
Price US$ 250.00  |  Buy this Report Now

About This Report

  
Brief Excerpt:

...Honda Motor Co., Ltd.'s A3 issuer rating reflects the company's well-established brand and position in its core automotive markets, as well as its strong balance sheet and liquidity. The rating also reflects the company's leading position globally in its motorcycle business, which has strong growth prospects in emerging markets such as Southeast Asia and higher profitability than its automotive business. The motorcycle business also provides cash flow diversification from the automotive business. On the other hand, the rating also takes into account Honda's relatively weak profitability, especially in its automotive business, compared with its purely automotive peers. The company also faces future pressure on its margins due to investments required for the transition to electrification. Furthermore, though unit sales have been recovering in key markets such as the United States and Japan, Honda still faces a slow recovery in China....

  
Report Type:

Credit Opinion

Company:
HONDA MOTOR CO., LTD.
Issuer
Honda Motor Co., Ltd.
Format:
PDF Adobe Acrobat
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Honda Motor Co., Ltd. - December 2023 (LTM): Peer Snapshot - Peer Snapshot – 2024/04/15 – US$ 750.00 – ¬ 2024 Moody's Corporation, Moody's Investors Service, Inc., Moody's Analytics, Inc. and/or their licensors and affiliates (collectively, "MOODY'S"). All rights reserved. CREDIT RATINGS ISSUED BY MOODY'S CREDIT RATINGS AFFILIATES ARE...

Honda Motor Co., Ltd. - September 2023 (LTM): Peer Snapshot - Peer Snapshot – 2023/12/20 – US$ 750.00 – ...Honda Motor Co., Ltd. Toyota Motor Corporation Nissan Motor Co., Ltd. Bayerische Motoren Werke Aktiengesellschaft Mercedes-Benz Group AG...

Honda Motor Co., Ltd. - June 2023 (LTM): Peer Snapshot - Peer Snapshot – 2023/09/19 – US$ 750.00 – ...Honda Motor Co., Ltd. Toyota Motor Corporation Nissan Motor Co., Ltd. Bayerische Motoren Werke Aktiengesellschaft Mercedes-Benz Group AG...

Honda Motor Co., Ltd.: Update to credit analysis - Credit Opinion – 2023/08/29 – US$ 250.00 – ...Honda Motor Co., Ltd.'s (Honda) A3 issuer rating reflects the company's well-established brand and position in its core auto markets and strong balance sheet and liquidity. The rating also reflects the company's leading position in the motorcycle business, which has a high margin and higher growth prospects in emerging markets such as Southeast Asia. The motorcycle business also provides cash flow diversification outside of its automotive business. On the other hand, the rating also takes into consideration Honda's relatively weak profitability, notably in its automotive segment, which reflects factors such as the cost increase from inflation and increase in R&D spending related to the transition to electrification. Over the next 12-18 months, we expect Honda's profitability in terms of EBITA margin to improve again to around 8%. While operational efficiency and recovery in unit sales underpin a solid margin enhancement along with the diminishing impact of the semiconductor shortage, continuing...

Honda Motor Co., Ltd. - March 2023 (LTM): Peer Snapshot - Peer Snapshot – 2023/07/31 – US$ 750.00 – ...Honda Motor Co., Ltd. Toyota Motor Corporation Bayerische Motoren Werke Aktiengesellschaft Mercedes-Benz Group AG Volkswagen Aktiengesellschaft...

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Moody's Global Credit Research—Moody's Investors Service, a leading global credit rating, research and risk analysis firm, publishes credit opinions, research, and ratings on fixed-income securities, issuers of securities and other credit obligations. Credit ratings and research help investors analyze the credit risks associated with fixed-income securities. Ratings also create efficiencies in fixed-income markets and similar obligations, such as insurance and derivatives, by providing reliable, credible, and independent assessments of credit risk. For issuers, Moody's services increase market liquidity and may reduce transaction costs.

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Cite this Report

  
MLA:
Moody's Global Credit Research. "Honda Motor Co., Ltd.: Update to credit analysis" Apr 25, 2024. Alacra Store. May 05, 2024. <http://www.alacrastore.com/moodys-credit-research/Honda-Motor-Co-Ltd-Update-to-credit-analysis-PBC_1400402>
  
APA:
Moody's Global Credit Research. (). Honda Motor Co., Ltd.: Update to credit analysis Apr 25, 2024. New York, NY: Alacra Store. Retrieved May 05, 2024 from <http://www.alacrastore.com/moodys-credit-research/Honda-Motor-Co-Ltd-Update-to-credit-analysis-PBC_1400402>
  
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