The rating on Mitsubishi Electric Corp. reflects the company's diversified business profile and relatively stable operating performance in areas such as energy and electric systems, industrial automation systems, satellite communication systems, and home appliances. The rating also reflects the expectation that these businesses should continue to mitigate the company's weak operating performance in electronic devices and information and telecommunications systems. Counterbalancing these factors is Mitsubishi Electric's financial profile, which is slightly weak for the current rating category. Mitsubishi Electric's ability to sustain its current rating depends on whether it can reduce costs and improve the stability and profitability of its earnings base, particularly in electronic devices such as system LSI ("system-on-a-chip") and multi-chip packages, as well as in information and
