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Ratings On Orix Placed On CreditWatch Negative On Contribution To Toshiba Offer

Published May 15, 2023

3 pages (1560 words) — Published May 15, 2023

Price US$ 150.00 | Buy this Report Now

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Abstract:

Orix has announced it plans to contribute ¥200 billion for the acquisition of Toshiba. If implemented, the contribution will likely hurt ORIX's declining capital ratio. We placed our 'A-' long-term issuer credit rating on ORIX on CreditWatch with negative implications. We will resolve CreditWatch after we confirm the result of a tender offer for Toshiba from Japan Industrial Partners Inc. TOKYO (S&P Global Ratings) May 15, 2023--S&P Global Ratings today said it has placed its 'A-' long-term issuer credit and senior unsecured ratings and 'BBB' subordinated loan rating on Orix Corp. on CreditWatch with negative implications. The CreditWatch placement reflects our view that Orix's risk adjusted capital (RAC) ratio will likely fall and stay below 10% if it contributes funds

Brief Excerpt:

...May 15, 2023 - Orix has announced it plans to contribute Ñ200 billion for the acquisition of Toshiba. - If implemented, the contribution will likely hurt ORIX's declining capital ratio. - We placed our 'A-' long-term issuer credit rating on ORIX on CreditWatch with negative implications. - We will resolve CreditWatch after we confirm the result of a tender offer for Toshiba from Japan Industrial Partners Inc. TOKYO (S&P Global Ratings) May 15, 2023--S&P Global Ratings today said it has placed its 'A-' long-term issuer credit and senior unsecured ratings and '###' subordinated loan rating on Orix Corp. on CreditWatch with negative implications. The CreditWatch placement reflects our view that Orix's risk adjusted capital (RAC) ratio will likely fall and stay below 10% if it contributes funds to acquire shares in Toshiba Corp. Orix intends to do so through a special purpose entity to be established by Japan Industrial Partners Inc. (JIP) for the acquisition. An RAC ratio of 10% is at the...

Report Type:

Ratings Action

Ticker

8591@JP

Issuer

Orix Corp.

GICS

Other Diversified Financial Services (40201020)

Sector

Global Issuers, Structured Finance

Country

Japan

Region

United States

Format:

PDF

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Cite this Report


MLA:	S&P Global Ratings’ Credit Research. "Ratings On Orix Placed On CreditWatch Negative On Contribution To Toshiba Offer" May 15, 2023. Alacra Store. May 13, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Ratings-On-Orix-Placed-On-CreditWatch-Negative-On-Contribution-To-Toshiba-Offer-2986045>

APA:	S&P Global Ratings’ Credit Research. (). Ratings On Orix Placed On CreditWatch Negative On Contribution To Toshiba Offer May 15, 2023. New York, NY: Alacra Store. Retrieved May 13, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Ratings-On-Orix-Placed-On-CreditWatch-Negative-On-Contribution-To-Toshiba-Offer-2986045>

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