The rating on Mitsubishi Electric Corp. reflects the company's diversified business portfolio and relatively stable operating performance in areas such as energy and electric systems, industrial automation systems, satellite communications systems, and home appliances. The rating also reflects the expectation that the company's relatively solid operating performance in these businesses should continue to mitigate weakness in the electronic devices and information and telecommunications systems segments. Counterbalancing these factors is Mitsubishi Electric's financial profile, which is weak for the current rating category. Although Mitsubishi Electric's operating performance is recovering as a result of its restructuring measures, including cost-cutting efforts, the company's profitability and cash flows are still weak and are expected to remain under pressure, at least in the near term,
