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Fitch Assigns A- Rating on Honda Motor's Proposed Notes

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Fitch Ratings has placed an A- rating on Honda Motor's (TYO:7267) proposed senior unsecured notes, according to a recent release.

The notes' rating is equivalent to the automaker's long-term foreign currency issuer default rating, since they are direct, unsecured, and unsubordinated obligations that rank equally with all its other unsecured and unsubordinated debt, Fitch said.

The company's industrial free cash flow will remain negative through the financial year ending March 2027 before breaking even the following year, according to Fitch.

This comes as the company reassessed its automobile electrification strategy, electric vehicle-linked charges, and supplier compensation, the rating agency said.

The negative outlook stems from eroding industry conditions and increased macroeconomic uncertainty, which could adversely hit vehicle demand and put pressure on the company's recovery, Fitch said.

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