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Toyota Motor US$1B Eurobond Rated AAA by S&P

16 July 1997

Toyota Motor US$1B Eurobond Rated AAA by S&P

    MELBOURNE, July 16 -- Standard & Poor's today has assigned
its triple-'A' rating to Toyota Motor Corp.'s US$1 billion 6.25% Euro straight
bond due July 22, 2002.  The rating outlook is stable.
    The rating is based on the consolidated strength of the Toyota group of
companies.  Toyota benefits from its dominant share in the Japanese automobile
market, its global presence in the industry, superior product engineering
capabilities, and a high degree of operating efficiency.
    Despite decreases in its worldwide vehicle sales and domestic production
in recent years, Toyota has turned in an acceptable financial performance.
Also, the company's profit potential should be enhanced by extensive, ongoing
restructuring efforts.
    Toyota's earnings are recovering to peak levels, with consolidated
operating income reaching Y665 billion for the fiscal year ended March 1997.
Toyota's relative cost position and financial performance, however, are still
highly affected by foreign-exchange fluctuations.  The company continues to
enjoy very low debt leverage, and it has exceptionally strong financial
flexibility, with more than Y1.85 trillion (about US$16 billion) in cash and
short-term marketable securities, which provides ample cushion to weather
market downturns.
    OUTLOOK:  Stable.
    Despite intensely competitive industry conditions, Toyota has been able to
maintain high profitability, largely reflecting its rigorous cost-cutting
programs.  Standard & Poor's expects that Toyota will maintain its
exceptionally strong financial profile over the next few years, Standard &
Poor's said. -- CreditWire

SOURCE  Standard & Poor's CreditWire