S&P Global Ratings placed Toyota Industries' (TYO:6201) A ratings on CreditWatch with positive implications, following a tender offer by a company indirectly owned by Toyota Motor (TYO:7203) and other Toyota group entities.

This move could significantly deepen the operational integration of Toyota Industries and elevate its strategic importance within the group, S&P said in a Tuesday release.

A successful tender offer would mean a rise in the group's indirect ownership in Toyota Industries from about 42% to nearly 100%, suggesting a stronger commitment to integration, the rating agency said.

This could prompt S&P to reclassify Toyota Industries as a "core" entity within the group, aligning its creditworthiness with that of Toyota Motor.

Although the tender offer could temporarily inflate Toyota Industries' debt-to-EBITDA ratio beyond 5x, S&P believes the company's substantial stake in Toyota Motor, if sold, would ease the financial burden.

Furthermore, the overall group's robust financial position should absorb any increased debt at Toyota Industries without materially impacting the creditworthiness, the rating agency said.

S&P plans to resolve the CreditWatch placement upon a successful tender offer, as it assesses Toyota Industries' evolving business strategy and its increased standing within the Toyota group.