Fitch Downgrades & Withdraws Yazaki International.CHICAGO -- Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has downgraded the short-term rating of Yazaki International Corp. (YIC YIC Youth Information Centre (UNICEF) YIC Young Innovative Company YIC Yes I Can YIC Yours in Christ YIC Yanbu Industrial College (Saudi Arabia) YIC You're in Command ), a subsidiary of Japan based Yazaki Corp., to 'B' from 'F3'. The downgrade reflects Fitch's concerns regarding operating performance and limited potential for debt reduction. Operating performance will likely be negatively affected by commodity and labor costs as well as customer pricing pressure. YIC's products are labor intensive Labor Intensive A process or industry that requires large amounts of human effort to produce goods. Notes: A good example is the hospitality industry (hotels, restaurants, etc), they are considered to be very people-oriented. See also: Capital Intensive, Trading Dollars and require copper and plastic resins as major inputs. Since 2004, copper prices have more than doubled and plastic prices have increased more than 30%. Partially offsetting Fitch's concerns would be YIC's market share and technology position as one of the leading automotive wire harness suppliers plus the company's attempts to move production and component sourcing to lower cost regions. Simultaneously, Fitch is withdrawing the rating and will no longer provide analytical coverage of this issuer. YIC is a holding company for marketing, engineering, distribution and certain manufacturing operations located in the Americas. YIC is a 100% owned subsidiary of privately-owned Yazaki Corp. Yazaki North America is the main operating subsidiary of YIC. Yazaki North America makes wire-harnesses, junction boxes; controls for power distribution, terminals, and connections; in-vehicle networks; fiber optics fiber optics, transmission of digitized messages or information by light pulses along hair-thin glass fibers. Each fiber is surrounded by a cladding having a high index of refractance so that the light is internally reflected and travels the length of the fiber ; and vehicle instrumentation. YIC's rating benefits from the 100% ownership by Yazaki Corp. and Yazaki Corp's global presence, although Yazaki Corp. does not guarantee the debt of YIC. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, 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 Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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