Sojitz Corp.'s (BBB-/Stable/--) efforts to improve its capital structure, while maintaining a prudent investment stance, has strengthened its financial profile. Despite the improvement, which followed a period of extensive financial restructuring and support from creditor banks, the company's business franchise remains weak compared to its peers. Sojitz has fewer high-margin, long-term energy resource-related interests and a weaker revenue base in the non-resource businesses. For Sojitz to improve its credit quality, Standard&Poor's Ratings Services believes that the company faces a key challenge to establish an earnings base that is less susceptible to economic cycles. In our view, Sojitz could achieve this by strengthening its business franchise while adequately managing its risk levels. Sojitz's business performance picked up in fiscal
