S&P Global Ratings on Tuesday placed an A+ long-term issue credit rating on Toyota Motor's (TYO:7203) euro senior unsecured bonds.
The bonds' rating is equivalent to the company's long-term issuer credit rating, stemming from the company's sufficiently low leverage that prevent significant disadvantage for some lenders, S&P said.
A sustained leading position in the global auto market, stable and above-sector-average profitability, and solid financial base support the company's rating.
However, S&P sees rising downward pressure on profitability and finances in the auto sector due to technological progress and the ascent of Chinese producers.
The company will use the bonds' proceeds to meet safety and environmental concerns in its auto segment, with S&P viewing sustainability and social aspects as crucial for the industry.