RAM Ratings has affirmed the AAA(s)/Stable ratings of Toyota Capital Malaysia Sdn Bhd's (Toyota Capital or the Company) RM2.5 bil Conventional and Islamic Medium-Term Notes (MTN) Programme (2016/2031) and RM2.5 bil Conventional and Islamic MTN Programme (2025/2040).

The issue ratings reflect the credit strength of the irrevocable and unconditional guarantees provided by Toyota Motor Finance (Netherlands) BV (Toyota Netherlands), a wholly owned subsidiary of Toyota Financial Services Corporation (TFS). These guarantees are further supported by a chain of credit support agreements extending to Toyota Motor Corporation (TMC or the Group). TMC's solid business profile is underpinned by its leading global automotive franchise, geographically diversified operations and its conservative financial profile, characterised by low leverage and solid liquidity.

Toyota Capital plays a strategic role as the captive financier for Toyota-affiliated automotive franchises in Malaysia and benefits from financial and operational support from its shareholders. The Company also finances Perodua vehicles, reflecting the Group's indirect ownership interest in Perodua through its subsidiary, Daihatsu Motor Co., Ltd. Financing penetration for new Toyota and Perodua cars reached a respective 20.6% and 9.3% in 1Q FY Mar 2027 (FY Mar 2025: 18.4% and 6.2%). Beyond the guarantees, shareholder support has been demonstrated by a RM100 mil capital injection from its shareholders in 2014 as well as credit lines from Toyota Netherlands and Toyota Motor Credit Corporation.

On a stand-alone basis, Toyota Capital's credit profile is constrained by its highly leveraged balance sheet, large exposure to lower income borrowers, and weaker-thanpeer profitability. Its financial profile has weakened since the previous review, reflecting a further increase in leverage amid sustained double-digit financing growth and some deterioration in asset quality. As at end-June 2026, the Company's adjusted1 net gea