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Fitch Rates Harley-Davidson Financial Services, Inc.'s Commercial Paper Program 'F2'



  Fitch Rates Harley-Davidson Financial Services, Inc.'s Commercial Paper
  Program 'F2'

Business Wire

CHICAGO -- January 2, 2013

Fitch Ratings assigns a rating of 'F2' to Harley-Davidson Financial Services,
Inc.'s (HDFS) $1.35 billion commercial paper (CP) program, based on the rating
linkage and core importance of HDFS to its parent company, Harley-Davidson,
Inc. (HOG, rated 'A-' with a Stable Outlook by Fitch) and the availability of
unsecured bank facilities equal to at least 100% of the outstanding principal
amount of the CP.

Historically, the $1.35 billion CP program was maintained by Harley-Davidson
Funding Corp. (HDFC), as part of this transaction, HDFC was merged into HDFS.
Thus, the new CP program at HDFS is effectively replacing the existing CP
program at HDFC. With the merger complete, Fitch expects to withdraw the
ratings of HDFC's commercial paper rating; however, the ratings assigned to
HDFC's medium-term notes will remain outstanding until their maturity.

HDFS's new CP program includes an upstream guarantee by Harley-Davidson Credit
Corp., which is also a guarantor for the existing HDFC CP program. The CP
program will also be backed by one or more unsecured bank facilities with
availability equal to at least 100% of the outstanding principal amount of the
CP.

HDFS is the captive finance subsidiary of (HOG), a manufacturer of
motorcycles. HDFS's long- and short-term Issuer Default Ratings are not
expected to be affected by the new CP program or the merger of HDFC into HDFS
as HDFS was already a guarantor for the HDFC CP program.

RATING DRIVERS AND SENSITIVITIES

The IDRs and senior debt ratings for HDFS are linked to those of its parent,
as Fitch believes HDFS is core to HOG's overall franchise. HDFS's ratings
reflect its close operating relationship with HOG, which is governed by a
support agreement in favor of debt holders under which HOG must maintain
HDFS's fixed charge coverage ratio at 1.25x and minimum net worth of $40
million.

Fitch assigns the following rating:

Harley-Davidson Financial Services, Inc.

--Commercial Paper 'F2'

Rating Outlook Stable

Additional information is available at 'www.fitchratings.com'. The ratings
above were solicited by, or on behalf of, the issuer, and therefore, Fitch has
been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'Global Financial Institutions Criteria' (Aug. 15, 2012);

--'Rating FI Subsidiaries and Holding Companies' (Aug. 10, 2012);

--'Finance and Leasing Companies Criteria' (Dec. 11, 2012).

Applicable Criteria and Related Research:

Global Financial Institutions Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=686181

Rating FI Subsidiaries and Holding Companies

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679209

Finance and Leasing Companies Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=696720

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS.
PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK:
HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING
DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S
PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND
METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF
CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL,
COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM
THE 'CODE OF CONDUCT' SECTION OF THIS SITE.

Contact:

Fitch Ratings
Primary Analyst (HDFS and HDFC):
Johann Juan, +1-312-368-3339
Director
70 West Madison Street
Chicago, IL 60602
or
Secondary Analyst (HDFS and HDFC):
Paul Ryndak, CFA, +1-312-368-3194
Director
or
Committee Chairperson (HDFS and HDFC):
Nathan Flanders, +1-212-908-0827
Managing Director
or
Media Relations:
Brian Bertsch, New York, +1 212-908-0549
brian.bertsch@fitchratings.com
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