Research Update: Hitachi Capital (U.K.) PLC Outlook Revised To Negative On Post-Merger Strategic Uncertainty; Ratings Affirmed

Hitachi Capital (UK) PLC (HCUK) parent Hitachi Capital Corp. (HCC) has merged with Mitsubishi UFJ Lease&Finance Co. Ltd. (MUL), creating Mitsubishi HC Capital Inc. (MHCC). Although HCUK historically represented more than 20% of HCC's operating assets and an even higher proportion of profit before tax, its contribution to the larger MHCC will be less significant. We revised the outlook on HCUK to negative from stable and affirmed our 'A-' long-term and 'A-2' short-term issuer credit ratings. The negative outlook reflects the increased potential for MHCC to change HCUK's strategic importance to the group in the future. On April 8, 2021, S&P Global Ratings revised its outlook on Hitachi Capital (UK) PLC (HCUK) to negative from stable and affirmed

...- Hitachi Capital (UK) PLC (HCUK) parent Hitachi Capital Corp. (HCC) has merged with Mitsubishi UFJ Lease & Finance Co. Ltd. (MUL), creating Mitsubishi HC Capital Inc. (MHCC). - Although HCUK historically represented more than 20% of HCC's operating assets and an even higher proportion of profit before tax, its contribution to the larger MHCC will be less significant. - We revised the outlook on HCUK to negative from stable and affirmed our 'A-' long-term and 'A-2' short-term issuer credit ratings. - The negative outlook reflects the increased potential for MHCC to change HCUK's strategic importance to the group in the future....

Research Update