Yamaha Motor Company Limited — Moody’s changes Yamaha’s outlook to stable from negative; affirms Baa1 rating

Rating Action: Moody’s changes Yamaha’s outlook to stable from negative; affirms Baa1 ratingGlobal Credit Research – 12 Apr 2021Tokyo, April 12, 2021 — Moody’s Japan K.K. has affirmed Yamaha Motor Company Limited’s Baa1 issuer rating.At the same time, Moody’s has changed the outlook to stable from negative.”The change in Yamaha’s outlook to stable reflects our expectation that the company’s profitability will continue to rise with the recovery in its unit sales from the trough during the pandemic,” says Mariko Semetko, Moody’s Vice President and Senior Credit Officer.”We expect leverage will remain elevated this year, but the company has ample cash on hand and will reduce leverage in 2022,” adds Semetko.RATINGS RATIONALEThe affirmation of Yamaha’s Baa1 issuer rating reflects the company’s (1) brand strength in the motorcycle business, with a focus on premium models; (2) business diversification provided by its high-margin marine segment, with a strong market position in North America; and (3) excellent liquidity, which provides the company flexibility should the coronavirus-induced…