Mitsubishi Motors Downgraded To 'SD' Following Debt-For-Equity Swap Mar 05
- ID: 1871484
- March 2005
- Standard & Poors
TOKYO (Standard & Poor's) March 10, 2005--Standard & Poor's Ratings Services today lowered its long-term issuer rating on Mitsubishi Motors Corp. (MMC) to 'SD' (Selective Default) from 'CC', following the completion of a capital infusion totaling ¥274 billion, including a debt-for-equity swap worth ¥54 billion by Bank of Tokyo-Mitsubishi Ltd. (BTM: A-/Positive/A-1). Mitsubishi Corp. (A-/Positive/A-2) and Mitsubishi Heavy Industries Ltd. (BBB/Negative/--) are also contributing to the capital infusion. "Standard & Poor's views debt-for-equity swaps as tantamount to default, since the consideration received is less than par value," said Standard & Poor's credit analyst Chizuko Satsukawa. The long-term corporate credit rating represents the issuer's willingness and ability to pay all financial obligations on a timely basis. An 'SD' rating is assigned...
Companies mentioned in this report are:
- Mitsubishi Motors Corp.
- Mitsubishi Corp.
- Mitsubishi UFJ Trust and Banking Corp.
- Bank of Tokyo-Mitsubishi Ltd.
- Mitsubishi Heavy Industries Ltd.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article. SHOW LESS READ MORE >