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. The company is concentrating its resources in areas with relatively light investment needs. In addition, the company maintains a publicly stated policy of financial discipline with limited dependence on debt as it pursues a growth strategy. In our base case scenario, we
