Mitsubishi Electric Corp. is Japan's third-largest diversified electronics company after Hitachi Ltd. (BBB+/Stable/A-2) and Toshiba Corp. (BBB/Stable/A-2). The company's business portfolio now centers on products and services for industrial users, as a result of its withdrawal from the semiconductor memory and mobile telephone businesses, which carried high business risks, and reduced operations in its LCD and flat-TV businesses. We expect Mitsubishi Electric to achieve a substantial increase in operating profits in fiscal 2010 (ending March 31, 2011), as a result of the global economic recovery and the company's aggressive cuts to fixed expenses. We expect structural reforms to continue to have positive effects, such as improving business performance. The company has posted stable profits in its social infrastructure-related businesses, such
