DBRS Rates Navistar Financial Mexico’s Certificados Bursátiles de Corto Plazo at R-3.MX; Stable

DBRS, Inc. (DBRS) assigned a R-3.MX rating on the DBRS National Scale to Navistar Financial, S.A. de C.V., Sociedad Financiera de Objeto Multiple, Entidad Regulada’s (Navistar Financial Mexico or the Company) Certificados Bursatiles de Corto Plazo. The trend on the rating is Stable. Certificados Bursatiles de Corto Plazo is a short-term debt program with an authorized maximum issuance total of M$ 1,800,000,000.

RATING DRIVERS
Given DBRS’s view that Navistar Financial Mexico’s ratings are closely tied to the financial strength of the Parent, the Company’s ratings will be impacted by changes in Navistar International’s credit fundamentals. Given this linkage between Navistar Financial Mexico and Navistar International Corporation, improvements to Navistar International’s credit fundamentals could have positive rating implications for Navistar Financial Mexico. Conversely, given this linkage, deterioration in the Parent’s credit fundamentals could negatively impact Navistar Financial Mexico’s ratings. Finally, sustained and material erosion of Navistar Financial Mexico’s fundamentals or a prolonged inability to access funding at a reasonable cost could have negative rating implications.

Notes:
All figures are in Mexican Pesos unless otherwise noted.

The applicable methodologies are Global Methodology for Rating Finance Companies (October 2016), and Global Methodology for Rating Banks and Banking Organisations (May 2017), both of which can be found on our website under Methodologies.

The primary sources of information used for this rating include company documents and SNL Financial. DBRS considers the information available to it for the purposes of providing this rating was of satisfactory quality.

Lead Analyst: Mark Nolan, CFA, Vice President, US Non-Bank FIG – Global FIG
Rating Committee Chair: Roger Lister, Managing Director, Chief Credit Officer, Financial institutions and Sovereign Group
Initial Rating Date: 22 February 2018
Last Rating Date: Not applicable.

The rated entity did participate in the rating process for this rating action. DBRS had access to the accounts and other relevant internal documents of the rated entity in connection with this rating action.

For more information on this credit or on this industry, visit www.dbrs.com.