Moody’s Japan K.K. has changed to negative from stable its outlook for the A1 the senior unsecured long-term and issuer ratings of Honda Motor Co., Ltd. and its supported subsidiaries. The outlook change reflects Moody’s concern that Honda faces significant challenges in regaining its market position due to growing competition. Moreover, a series of negative one-time events in 2011 have delayed the recovery in its profits, which have historically been high and stable.
Battered by the strong yen and supply disruptions from Thailand’s floods, the Japanese automaker said last week that its net earnings in the October-December quarter tumbled 41 percent to 47.6 billion yen ($625 million) and projected a sharply lower full-year profit.
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