Moodys Downgrades Toyota Motor And Affiliates To Aa3; Remain On Review For Possible Downgrade

Moody's Japan K.K. has today downgraded to Aa3 from Aa2 the senior unsecured long-term ratings on Toyota Motor Corporation (Toyota) and its supported subsidiaries. The ratings also remain on review for possible further downgrade. The ratings on the following entities are affected: Toyota Motor Corporation Toyota Financial Services Corporation Toyota Finance Australia Limited Toyota Credit Canada Inc. Toyota Motor Finance (Netherlands) B.V. Toyota Finance Corporation Toyota Finance New Zealand Limited Toyota Financial Services (S. Africa) (Pty) RATING RATIONALE The downgrade reflects Moody's concern that it would take some time for Toyota to recover its previous strong profitability, and its competitive strength will remain under pressure for a prolonged period in view of challenging market conditions. Moody's also continues its review of Toyota's ratings for possible further downgrade because its final ratings incorporate one notch of support from the country's banks and government, which are themselves under review for possible downgrade.