Rating On Japan-Based Sojitz Affirmed On More Stability For Net Profit; Outlook Remains Stable

Sojitz's well-diversified business portfolio, consisting mostly of nonresource businesses, is likely to consistently generate solid net profit in the next two to three years following a gradual increase over the past few years. Its adjusted capital will need some time to achieve stability at levels that at least match the amount of risk-based capital required under our 'BBB' stress scenario because its plan to continue aggressive investments for growth is likely to cause the expansion of risk assets to outpace the accumulation of shareholders' equity. We are affirming our 'BBB-' long-term corporate credit rating on Sojitz. The outlook remains stable, reflecting our view that Sojitz will generate stable net profit and any deterioration in its capital adequacy due to aggressive

... consisting mostly of nonresource businesses, is likely to consistently generate solid net profit in the next two to three years following a gradual increase over the past few years. + Its adjusted capital will need some time to achieve stability at levels that at least match the amount of risk-based capital required under our '###' stress scenario because its plan to continue aggressive investments for growth is likely to cause the expansion of risk assets to outpace the accumulation of shareholders' equity. + We are affirming our '###-' long-term corporate credit rating on Sojitz. + The outlook remains stable, reflecting our view that Sojitz will generate stable net profit and any deterioration in its capital adequacy due to aggressive investments will remain within tolerances for our current assessment of its financial standing. TOKYO (S&P Global Ratings) July 20, 2018--S&P Global Ratings today said it has affirmed its '###-' long-term corporate...

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