TOKYO (Standard&Poor's) July 14, 2004--Standard&Poor's Ratings Services today said its 'B+' ratings on Sojitz' bond issues remained on CreditWatch with negative implications, despite the lowering of its long-term credit rating on Sojitz Corp. to 'CCC' from 'B-'. The likelihood has increased that Sojitz will default on some of its obligations through debt forgiveness or a debt-for-equity swap, but this will not necessarily affect the rating on its senior unsecured bonds. The long-term corporate credit rating also remains on CreditWatch with negative implications where it was placed on June 8, 2004. UFJ Bank Ltd., Sojitz' main bank, is now accelerating measures to improve the quality of its lending portfolio, and is likely to ask weaker borrowers to
