Bulletin: Mitsubishi Corp. Aggressive Spending To Eat Into Its Financial Cushion

TOKYO (S&P Global Ratings) May 10, 2019--An expected increase in Mitsubishi Corp.'s (A/Stable/A-1) growth investments and shareholder returns is likely to erode its financial cushion, in S&P Global Ratings' view. This is despite the likelihood of the Japan-based general trading and investment company continuing to earn robust profits. Mitsubishi's enhanced business portfolio, particularly in the nonresource segment, has made it more resilient to external factors like swings in resource prices and exchange rates. The company announced on May 9 a second straight year of record profit in fiscal 2018 (ended March 31, 2019). We think it is likely to maintain similar profit levels in fiscal 2019 and further accumulate shareholders' equity. Meanwhile, we expect investments to grow in fiscal 2019

...May 10, 2019 TOKYO (S&P Global Ratings) May 10, 2019--An expected increase in Mitsubishi Corp.'s (A/Stable/A-1) growth investments and shareholder returns is likely to erode its financial cushion, in S&P Global Ratings' view. This is despite the likelihood of the Japan-based general trading and investment company continuing to earn robust profits. Mitsubishi's enhanced business portfolio, particularly in the nonresource segment, has made it more resilient to external factors like swings in resource prices and exchange rates. The company announced on May 9 a second straight year of record profit in fiscal 2018 (ended March 31, 2019). We think it is likely to maintain similar profit levels in fiscal 2019 and further accumulate shareholders' equity. Meanwhile, we expect investments to grow in fiscal 2019 from the already elevated level of Ñ895.8 billion (fresh and replacement investments) the previous year. It also announced a share buyback plan of up to Ñ300.0 billion on May 9. Furthermore,...

Bulletin