Bulletin: Further Earnings Decline Looms Over Mitsubishi Corp. Ratings

TOKYO (S&P Global Ratings) Nov. 27, 2019--Mitsubishi Corp.'s (A/Stable/A-1) financial cushion is likely remain intact despite recently announced plans to spend heavily. However, a further decline in profitability in the coming year could weigh on its ratings, in S&P Global Ratings' view. We believe the Japan-based general trading and investment company's robust capital and asset sales are likely to support healthy levels of capital adequacy relative to risk-weighted assets. However, our ratings on Mitsubishi may come under pressure if its earnings in fiscal 2020 (ending March 31, 2021) decline further from the relatively weak levels it expects for fiscal 2019. Mitsubishi said on Nov. 25, 2019, that it plans to jointly acquire Netherlands-based energy company N.V. Eneco Beheer (BBB+/Stable/A-2) for

...November 27, 2019 TOKYO (S&P Global Ratings) Nov. 27, 2019--Mitsubishi Corp.'s (A/Stable/A-1) financial cushion is likely remain intact despite recently announced plans to spend heavily. However, a further decline in profitability in the coming year could weigh on its ratings, in S&P Global Ratings' view. We believe the Japan-based general trading and investment company's robust capital and asset sales are likely to support healthy levels of capital adequacy relative to risk-weighted assets. However, our ratings on Mitsubishi may come under pressure if its earnings in fiscal 2020 (ending March 31, 2021) decline further from the relatively weak levels it expects for fiscal 2019. Mitsubishi said on Nov. 25, 2019, that it plans to jointly acquire Netherlands-based energy company N.V. Eneco Beheer (###+/Stable/A-2) for as much as Ñ500 billion with Japan-based Chubu Electric Power Co. The move is part of an attempt to enhance its renewable power business in Europe. We expect elevated levels...

Bulletin