Honda Motor Co., Ltd. & Honda Canada Finance Inc.: Rating Report

On January 21, 2020, DBRS Limited (DBRS Morningstar) confirmed Honda Motor Co., Ltd.’s (Honda or the Company) Issuer Rating at A (high) as well as Honda Canada Finance Inc.’s Senior Unsecured Debentures and Commercial Paper (CP) ratings at A (high) and R-1 (middle), respectively. All trends are Stable. The confirmations reflect the Company’s strong business risk assessment as an automotive original equipment manufacturer (OEM) with moderate global scale, but strong technological capabilities. Honda also derives diversification benefits from its Motorcycle and Financial Services operations. Additionally, consistent with its very conservative financial policy, the Company’s financial risk assessment (FRA) remains well commensurate with the ratings, notwithstanding a discernible softening in recent earnings performance.