Mitsubishi Corp.'s Proposed Subordinated Hybrid Bonds Rated 'BBB+' And Assessed As Having Intermediate Equity Content

TOKYO (S&P Global Ratings) Sept. 7, 2016--S&P Global Ratings today said it has assigned its 'BBB+' long-term issue ratings to Japan-based Mitsubishi Corp.'s (Mitsubishi; A/Negative/A-1) proposed unsecured subordinated hybrid bonds. The general trading and investment company ("sogo shosha") will issue the bonds in three tranches--series 4, 5, and 6. We arrive at our 'BBB+' issue rating on the proposed bonds by notching down from our 'A' long-term corporate credit rating on Mitsubishi. The two-notch differential reflects our notching methodology, whereby we deduct one notch for the subordination of the bonds and one additional notch for the issuer's option to defer interest payment. We classify the proposed bonds as having intermediate equity content until 2021 for series 4 and 5 and

...TOKYO (S&P Global Ratings) Sept. 7, 2016--S&P Global Ratings today said it has assigned its '###+' long-term issue ratings to Japan-based Mitsubishi Corp.'s (Mitsubishi; A/Negative/A-1) proposed unsecured subordinated hybrid bonds. The general trading and investment company ("sogo shosha") will issue the bonds in three tranches--series 4, 5, and 6. We arrive at our '###+' issue rating on the proposed bonds by notching down from our 'A' long-term corporate credit rating on Mitsubishi. The two-notch differential reflects our notching methodology, whereby we deduct one notch for the subordination of the bonds and one additional notch for the issuer's option to defer interest payment. We classify the proposed bonds as having intermediate equity content until 2021 for series 4 and 5 and 2026 for series 6. Their characteristics--the issuer's option to defer interest payments; sufficient permanence; and subordination in liquidation or bankruptcy proceedings--meet our standards for intermediate...

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