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S&P’s Puts Marubeni on CreditWatch Negative
TOKYO (Standard & Poor's) April 19, 2016:
The credit ratings company said that Japanese trading company Marubeni is now on a credit watch with a chance of a downgrade because the company cut its net profit guidance for fiscal year ended March 31, 2016 to ¥60 bn from ¥180 bn. The reason for the cut was the forecast large impairment loss across commodity and other businesses.
The agency said: “We believe the company’s deteriorated profitability might jeopardize its financial risk profile and drag it below the level that is commensurate with the current ratings.”
S&P’s will not examine the company to see if it can maintain a financial risk profile that is in line with its current ratings.
Facts S&P’s will look for include: profit recovery potential; business strategy and investment strategy; outlook for free cash flow; asset sale plans and so on.