Mitsubishi HC Capital UK PLC

MHCUK is MHC's largest operating entity in Europe. It is a U.K.-based non-bank financial services company, authorized and regulated by the Financial Conduct Authority (FCA). With over 2,200 employees and £8.5 billion in total assets, MCHUK operates across five business divisions: Novuna Consumer Finance, Novuna Vehicle Solutions, Novuna Business Finance, Novuna Business Cash Flow, and European Vendor Finance UK and Europe, and provides finance solutions to its roughly 1.3 million retail and corporate customers. MHC also guarantees MHCUK's medium-term notes (MTNs) issued under its MTN program and its commercial paper (CP) issuance. Our 'A-2' short-term rating on MHCUK is based on group support from MHC. Although moderating, MHCUK also benefitted from a still strong used vehicle market for disposing leased

...Key strengths Key risks Wholly owned subsidiary of Mitsubishi HC Capital (MHC). Exposure to the U.K. household sector via consumer finance business. Well-diversified U.K. financial services company with subsidiaries in continental Europe. High competition in U.K. lending markets, weighing on profitability. Low gearing and good management of credit costs. Sensitivity to higher swap rates leading to margin compression on new lending....

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