Sojitz Corp.'s (Sojitz; BBB-/Stable/--) financial profile has improved substantially since a period of extensive financial restructuring and support from creditor banks up to March 2005. The company maintains its asset risk at appropriate levels, supported by a discreet investment stance. It has also raised profitability by concentrating on more profitable businesses. Furthermore, the recent spike in commodity prices, mainly crude oil, contributed to record earnings. Sojitz relied heavily on preferred stock, which has debt-like characteristics and exceeded the company's shareholders' equity until March 2006. The company announced capital reorganization plans in April 2006 to issue ¥300 billion in convertible bonds and repurchase and cancel ¥560.4 billion worth of outstanding preferred shares. Sojitz completed the conversion of its convertible bonds and
