The stable outlook on Hitachi Capital (U.K.) PLC (HCUK) reflects that on Hitachi Capital Corp. (HCC). We recently affirmed the ratings on HCC following the announcement of a planned merger with Mitsubishi UFJ Lease&Finance Co. Ltd. (MUL). Although the COVID-19 economic shock reflects a challenging earnings environment for HCUK, we expect the provision of monetary and fiscal support will allow asset quality issues to be contained. We assume that HCUK's role within HCC will not diminish, that its statutory profitability will be maintained, and that its asset quality metrics will remain broadly resilient over our two-year outlook horizon. We would lower the ratings if we were to downgrade HCC. Although less likely, we could also lower the ratings
