S&P Global Ratings maintained Honda Motor's (TYO:7267) A- long- and A-2 short-term issuer credit ratings, with a stable outlook, according to a Friday release.

The affirmation reflects the rating agency's view that the Japan-based automaker will retain relatively steady profitability over the next one to two years due to the sales of hybrid electric vehicles (HEVs).

The company also has a robust motorcycle segment and maintains ample cash flow and solid fundamentals due to its frugal financial management, S&P said.

The company's consolidated EBITDA margin should stay at slightly above 10% amid a strong HEV performance in the next two to three years, according to S&P.

The rating agency also expects the company to continue leading the market with a 35% share.

However, S&P believes the company's declining global competitiveness in the automobile business will likely continue in the next one to two years.

Significant shifts in the company's EBITDA margin and the ratio of free operating cash flow to sales could trigger future rating actions, S&P said.

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