ASTANA, Kazakhstan, August 16. Fitch Ratings has affirmed Toyota Financial Services Kazakhstan MFO LLP's (TFSKZ) Long-Term Issuer Default Ratings (IDRs) at 'BBB+' with a stable outlook, Trend reports.
Fitch has also affirmed TFSKZ's National Long-Term Rating at 'AAA(kaz)' and Shareholder Support Ratings (SSR) at 'bbb+'.
As the Fitch noted, TFSKZ's ratings are driven by support from Toyota Financial Services Corporation (TFSC), which fully controls TFSKZ through Toyota Financial Services UK PLC (TFSUK), and ultimately from Toyota Motor Corporation (TMC, A+/Stable), one of the world's largest automotive manufacturers.
Fitch's support assessment considers TFSKZ's strategic role in supporting TMC's sales in Kazakhstan; full ultimate ownership by TMC; TFSKZ's high level of operational and corporate integration into the broader Toyota Group; record of liquidity and capital support; common branding (implying high reputational risk in the event of subsidiary default); and the low cost of potential support, due to TFSKZ's small size relative to the parent (less than 0.1 percent of TMC's consolidated assets and equity).
In addition, Fitch views TFSKZ's Standalone Credit Profile as materially weaker than the support-driven IDRs. This is attributed to Kazakhstan's structurally volatile operating environment, the company's high leverage and its reliance on Toyota Group for funding and franchise strength.
