S&P Puts Japanese General Trading Cos on Watch Neg.TOKYO--(BUSINESS WIRE)--Standard & Poor's CreditWire 6/5/98-- Standard & Poor's today placed its ratings of Itochu Itochu Corporation (伊藤忠商事株式会社 Corp., Marubeni Corp., Mitsubishi Corp., Mitsui & Co. Ltd., and Sumitomo Corp. and related entities on CreditWatch with negative implications (see ratings list below). At the same time, Standard & Poor's assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. its double-'A'-minus rating to Mitsubishi's Y35 billion 2.24% domestic straight bond series 10 due June 22, 2010 and placed the rating on CreditWatch with negative implications. The CreditWatch placements reflect the Japanese general trading companies' exposure to operating and financial risks in troubled regional markets, and in particular, concerns over the quality of nontrading investments in Indonesia (CCC CCC A very speculative grade assigned to a debt obligation by a rating agency. Such a rating indicates default or considerable doubt that interest will be paid or principal repaid. Also called Caa. +/Watch Neg). Pressure on the credit profiles of the top-tier trading companies has gradually increased in conjunction with their highly leveraged financial profiles and sizable siz·a·ble also size·a·ble adj. Of considerable size; fairly large. siz  a·ble·ness n. debt burdens, their reliance on the weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak en·er n. Japanese
banking system, and the burden of write-offs of failed real estate and
financial investments since the collapse of Japan's bubble A bit in bubble memory or a symbol in a bubble chart. economy.
Further compounding these difficulties are the companies' dwindling dwin·dle v. dwin·dled, dwin·dling, dwin·dles v.intr. To become gradually less until little remains. v.tr. To cause to dwindle. See Synonyms at decrease. unrealized securities gains and other asset values amid a sluggish economy Sluggish Economy A state in the economy in which the growth is slow, flat or declining. The term can refer to the economy as a whole or a component of the economy, such as weak housing starts. and stock market in Japan. Prospects that the general traders Traders Individuals who take positions in securities and their derivatives with the objective of making profits. Traders can make markets by trading the flow. When they do this, their objective is to earn the bid/ask spread. can earn adequate returns on their fixed-asset investments in weak Southeast Asian markets are now poor, while the risks of project failures and loan write-offs have grown. The companies may be forced to inject in·ject v. 1. To introduce a substance, such as a drug or vaccine, into a body part. 2. To treat by means of injection. more cash into certain projects to bring them to completion, replacing local partners struggling with insufficient liquidity. Standard & Poor's will review the business and financial strategies of Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo, assessing how each company intends to deal with current pressures. The ratings could be lowered or affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. , depending on the individual companies' investment and risk management policies, their ability to absorb potential losses, and the adequacy of their financial cushions to weather adverse scenarios. The top-tier traders are expected to maintain investment-grade investment-grade Of, relating to, or being a bond suitable for purchase by institutions under the prudent man rule. Investment-grade is restricted to those bonds graded BBB and above by Standard & Poor's and graded Baa3 and above by Moody's. ratings despite current difficulties, given their vast, globally diverse trading businesses and the highly liquid, comparatively low-risk working capital bases that make up the bulk of their balance sheets. In addition, although Standard & Poor's does not formally place its public information ratings on CreditWatch, it will review the implications of the above risk factors for Kanematsu Corp. (BBpi), Nichimen Corp. (BBBpi), Nissho Iwai Corp. (BBBpi), and Tomen Corp. (BBpi).---CreditWire -0-
RATINGS PLACED ON CREDITWATCH WITH NEGATIVE IMPLICATIONS
TO FROM
Itochu Corp.
Corp credit rtg --/Watch Neg/A-2 --/--/A-2
Itochu Australia Ltd.
Corp credit rtg --/Watch Neg/A-2 --/--/A-2
Australian CP prog
(Supp: Itochu Corp.) A-2/Watch Neg A-2
Itochu Finance (Europe) PLC
Corp credit rtg --/Watch Neg/A-2 --/--/A-2
Euro CP prog
(Supp: Itochu Corp.) A-2/Watch Neg A-2
Itochu Funding Corp.
Corp credit rtg --/Watch Neg/A-2 --/--/A-2
CP (Supp: Itochu Corp.) A-2/Watch Neg A-2
Itochu International Inc.
Corp credit rtg --/Watch Neg/A-2 --/--/A-2
Marubeni Corp.
Corp credit rtg --/Watch Neg/A-2 --/--/A-2
Marubeni America Corp.
CP (Supp: Marubeni Corp.) A-2/Watch Neg A-2
Marubeni International Finance PLC
Euro CP prog
(Gtd: Marubeni Corp.) A-2/Watch Neg A-2
Marubeni U.K. PLC
Euro CP prog
(Gtd: Marubeni Corp.) A-2/Watch Neg A-2
Mitsubishi Corp.
Corp credit rtg AA-/Watch Neg/A-1+ AA-/Stable/A-1+
Sr unsecd debt AA-/Watch Neg AA-
Japanese CP prog A-1+/Watch Neg A-1+
Mitsubishi Corp. Finance PLC
Corp credit rtg AA-/Watch Neg/A-1+ AA-/Stable/A-1+
Sr unsecd debt
(Supp: Mitsubishi Corp.) AA-/Watch Neg AA-
CP (Supp: Mitsubishi Corp.) A-1+/Watch Neg A-1+
MC Finance International B.V.
Sr unsecd debt
(Gtd: Mitsubishi Corp.
Finance PLC) AA-/Watch Neg AA-
Mitsubishi International Corp.
Corp credit rtg AA-/Watch Neg/A-1+ AA-/Stable/A-1+
Sr unsecd debt
(Supp: Mitsubishi Corp.) AA-/Watch Neg AA-
CP A-1+/Watch Neg A-1+
Mitsui & Co. Ltd.
Corp credit rtg --/Watch Neg/A-1 --/--/A-1
Mitsui & Co. Financial Services
(Australia) Ltd.
CP (Gtd: Mitsui & Co.
(Australia) Ltd.) A-1/Watch Neg A-1
Mitsui & Co. (Hong Kong) Ltd.
Corp credit rtg --/Watch Neg/A-1 --/--/A-1
Euro CP prog
(Supp: Mitsui & Co. Ltd.) A-1/Watch Neg A-1
Mitsui & Co. International
(Europe) B.V.
Corp credit rtg --/Watch Neg/A-1 --/--/A-1
Euro CP prog
(Supp: Mitsui & Co. Ltd.) A-1/Watch Neg A-1
Mitsui & Co. U.K. PLC
Corp credit rtg --/Watch Neg/A-1 --/--/A-1
Euro CP prog
(Supp: Mitsui & Co. Ltd.) A-1/Watch Neg A-1
Mitsui & Co. (USA) Inc.
Corp credit rtg --/Watch Neg/A-1 --/--/A-1
CP (Supp: Mitsui & Co. Ltd.) A-1/Watch Neg A-1
Sumitomo Corp.
Corp credit rtg --/Watch Neg/A-1 --/--/A-1
Sumitomo Corp. Capital Europe PLC
Corp credit rtg --/Watch Neg/A-1 --/--/A-1
Euro CP prog
(Supp: Sumitomo Corp.) A-1/Watch Neg A-1
Sumitomo Corp. of America
Corp credit rtg --/Watch Neg/A-1 --/--/A-1
CP (Supp: Sumitomo Corp.) A-1/Watch Neg A-1
CONTACT: Yoshiyuki Iba, Tokyo (81) 3-3593-8716 Daisuke Fukutomi, Tokyo (81) 3-3593-8714 Robert E Richards Rich·ards , Dickinson Woodruff 1895-1973. American physician. He shared a 1956 Nobel Prize for developing cardiac catheterization. , Melbourne (61) 3-9250-4570 Sol Sol, in Roman religion Sol (sŏl), in Roman religion, sun god. An ancient god of Mesopotamian origin, he was introduced (c.220) into Roman religion as Sol Invictus by emperor Heliogabalus. B Samson, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of (1) 212-208-1630 For more information on criteria or subscriptions: http://www.ratings.standardpoor.com |
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