JCR rates Marubeni's upcoming debt at A

4 November 2009 - JCR gave Wednesday an A rating to the upcoming bonds of Japanese trader Marubeni Corp (TYO:8002).

The company will issue its 13-year JPY73bn (USD803.9m/EUR543.1m) 2.30% bonds No 73 on 11 November 2009 under its shelf registration.

Marubeni is a general trading company which has competitive strength in overseas IPP business and grain trading.

The company's net incomes became negative for the paper, pulp and steel products and many other segments dropped their incomes compared with a year earlier, being affected by the worldwide economic downturn.

It can not avoid decreasing both revenue and profit for the full fiscal 2009.

However, JCR considers that the company can maintain a certain level of earnings as a result of the strengthening its business base by "selection and concentration" per its portfolio unit.

The company plans to place more emphasis on financial stability in the face of deteriorating external environment. It aims to reduce its interest-bearing debt by controlling amount of investments.

The consolidated net assets were reduced more than cut-back in the risk assets in the fiscal year ended 31 March 2009. As a result, risk assets exceeded the consolidated net assets.

The balance between the risk assets and the consolidated net assets started to improve beginning in the first quarter of fiscal 2009 thanks to the increasing net assets resulting from changes in stock prices and the ensuring of profit.

With risks from changes in stock prices and fluctuations in currency exchange rates, JCR considers that the strengthening of risk asset management and accumulation of the consolidated net assets will remain issues for the Company to be addressed.

Additionally, it cannot be denied that a loss occurrence risk might increase depending on deterioration in the external environment.

Therefore, JCR will pay attention to progress in investment projects and changes in asset value.

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