Mitsubishi Corp.

The stable outlook reflects our view that the company's adjusted capital will recover in the coming year or two to levels exceeding that of risk-based capital (100%) required under our 'A' stress scenario. We base this view on our expectation that despite uncertain external conditions, the company will continue to accumulate shareholders' equity through the retention of net income and uphold an investment policy centered on financial soundness. The outlook also reflects our expectation that Mitsubishi Corp. will achieve a steady RORA of about 10%-15% in fiscal 2021 and thereafter. RORA's numerator is pretax net income and its denominator is risk-based assets reflecting required capital levels under our 'BBB' stress scenario. We would consider downgrading Mitsubishi Corp. in either of

...We expect Mitsubishi Corp.'s performance to recover to pre-pandemic levels in the coming year or two. S&P Global Ratings expects the company's net profit to increase to just below Ñ400 billion in fiscal 2021 (ending March 31, 2022) from about Ñ172.6 billion a year earlier. This is because of a global economic recovery from the COVID-19 pandemic, more favorable resource prices, and the absence of impairment losses recorded the previous year related to its investments in subsidiary Lawson Inc. and equity-method affiliate Mitsubishi Motors Corp. We expect net profit to then increase to about Ñ500 billion in fiscal 2022. Mitsubishi Corp.'s extremely well-diversified and solid business portfolio will likely underpin its profit recovery. The company continued during the pandemic to generate stable profit in nonresource businesses including food, infrastructure and power solutions. We also foresee higher crude oil prices leading to profit growth in overseas shale gas development and liquefied...

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