Mitsubishi Corp.'s Proposed Subordinated Hybrid Notes Rated 'A-' And Assessed "Intermediate" Equity Content

TOKYO (Standard&Poor's) June 12, 2015--Standard&Poor's Ratings Services today said that it has assigned its 'A-' issue rating to the proposed unsecured subordinated hybrid notes to be issued by Mitsubishi Corp. (A+/Stable/A-1), a Japan-based general trading and investment company. The proposed notes will have three tranches. We arrive at our 'A-' issue rating on the proposed notes 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 notes and one additional notch for the issuer's option to defer interest payment. We classify the proposed notes as having "intermediate" equity content until 2020 for series 1 and 2 and

...TOKYO (Standard & Poor's) June 12, 2015--Standard & Poor's Ratings Services today said that it has assigned its 'A-' issue rating to the proposed unsecured subordinated hybrid notes to be issued by Mitsubishi Corp. (A+/Stable/A-1), a Japan-based general trading and investment company. The proposed notes will have three tranches. We arrive at our 'A-' issue rating on the proposed notes 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 notes and one additional notch for the issuer's option to defer interest payment. We classify the proposed notes as having "intermediate" equity content until 2020 for series 1 and 2 and 2025 for series 3. Their characteristics--the issuer's option to defer interest payments; sufficient permanence; and subordination in liquidation or bankruptcy proceedings--meet our standards for "intermediate" equity content of...

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