Mitsubishi Electric Corp.

The stable outlook reflects our view that Mitsubishi Electric's EBITDA margin is likely to remain stable in the 11%-12% range in the next one to two years. It also reflects our view that the company will maintain its very sound financial position for the ratings supported by conservative financial management. The company's business portfolio is adequately diversified, which is a positive rating factor because it helps the company maintain stable profitability even when some units are under downward pressure. We could lower the rating if Mitsubishi Electric's profitability declines or becomes less stable due to a downturn in the global economy or weakening competitiveness of its mainstay businesses. In addition, we could lower the ratings if the company's financial standing

... portfolio is likely to continue to support its earnings.We expect Japan-based diversified electronics maker Mitsubishi Electric to maintain its stable operating performance despite the recent market slowdown in its cyclical businesses, such as factory automation systems and electronic devices. We view the company's increasingly stable earnings base as a positive rating factor. Its diversified portfolio consists of such businesses as electric power equipment, elevators, factory automation products and systems, automotive products and air conditioning equipment, which we believe have different cyclical patterns with diverse end markets....

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