S and P cuts 5 major Japanese trading firms' ratings.

TOKYO, Feb. 9 Kyodo Standard and Poor's (S and P) said Tuesday that it has downgraded its credit ratings of Itochu Corp., Marubeni Corp., Mitsubishi Corp., Mitsui and Co. and Nissho Iwai Corp., noting the greater business and financial risks leading Japanese trading houses are currently facing. The short-term rating of Itochu was lowered from A-3 to the speculative level of B, reflecting its rising debt burden and dwindling capacity to deal with problem areas, the major U.S. credit rating agency said. Itochu and Marubeni, whose short-term rating dropped to A-3 from A-2, have greater exposure to risks from cyclical trading products and from nontrading investments, according to S and P. Mitsubishi's long- and short-term ratings were downgraded to A-minus and A-2, respectively, from A-plus and A-1. The short-term rating of Mitsui was cut to A-2 from A-1, while Nissho Iwai's long-term rating based on public information, or "pi," is now Bpi, down from BBpi. Itochu said it will strive to improve its corporate value, while Mitsubishi does not consider that its credit worthiness has dropped. Mitsui, Marubeni and Nissho Iwai said they had no comment on the revised ratings.