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.
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