...May 11, 2020 TOKYO (S&P Global Ratings) May 11, 2020--S&P Global Ratings today said that the ratings on Mitsubishi Corp. (A/Stable/A-1) will likely come under stronger pressure if the company prepays subordinated notes it issued in June 2015 rather than replacing them, as this would cause its financial buffer to shrink. On May 8, 2020, the company announced it would prepay the subordinated notes, worth Ñ160 billion, on the first callable date, June 18, 2020. The company has not disclosed any specific plans to issue new subordinated notes to refinance the existing ones. With business conditions rapidly worsening, the company's capital adequacy against risk-weighted assets, an important consideration in our credit analysis, is likely to deteriorate in fiscal 2020 (ending March 31, 2021) to levels seen in 2016 and 2017, in our view. Since that period, when the company most recently issued hybrid securities, it has sought to control investment and increase bottom-line profit and shareholder...
