Sojitz Corp.'s financial profile improved significantly after going through a financial restructuring and receiving support from creditor banks. In 2003, Sojitz received a capital injection of ¥263 billion from its key creditor banks led by the former UFJ Bank Ltd. In the following year, Sojitz's holding company swapped ¥370 billion worth of debt for equity and reduced the size of its balance sheet by ¥620 billion in a major restructuring effort that included sales, dispositions, and impairments of assets resulting in a ¥430 billion net loss reported in fiscal 2004 (ended March 31, 2005). Following the extensive restructuring, Sojitz's asset quality improved substantially. Sojitz's heavy reliance on preferred stock with its debt-like characteristics had been a constraint on the rating
