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, and home appliances. The rating also reflects the expectation that the company's relatively solid operating performance in these businesses will 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. As a result of its restructuring measures, including cost-cutting efforts, Mitsubishi Electric's operating performance is recovering. However, the company's profitability and cash flow are still weak and are expected to remain under pressure, at least in the near term, amid an unfavorable
