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ARCHIVE | Criteria | Corporates | General: Evolution Of Japan's Trading Companies Adds New Risk Dimensions Apr 02 Product Image

ARCHIVE | Criteria | Corporates | General: Evolution Of Japan's Trading Companies Adds New Risk Dimensions Apr 02

  • ID: 1872066
  • April 2002
  • Region: Japan
  • Standard & Poors

FEATURED COMPANIES

  • ITOCHU Corp.
  • Kanematsu Corp.
  • Marubeni Corp.
  • Mitsubishi Corp.
  • Mitsui & Co. Ltd.
  • Nissho Iwai Corp.
  • MORE

Abstract
Over the past decade, the raison-d'être of Japan's general trading companies (GTCs) has changed profoundly, and with it so has their credit quality. What were once core trading activities have since become of secondary importance to far riskier long-term lending and capital investment activities. This gradual shift in activitiesfrom trade intermediaries to providers of long-term capitalhas not been accompanied by a commensurate rise in profitability and strengthening of the GTCs' capital base. In fact, it has already entailed a sharp deterioration in the credit standing of most GTCs, whose ratings have dropped by an average of two categories since the early 1990s. In addition to the continuing transformation of GTCs into providers of long-term capital, deflationary pressures, the slow unraveling...

Companies mentioned in this report are:
- Mitsubishi Corp.
- Mitsui & Co. Ltd.
- Nissho Iwai Corp.
- Sumitomo Corp.
- Marubeni Corp.
- ITOCHU Corp.
- Kanematsu Corp.

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Note: Product cover images may vary from those shown

- Mitsubishi Corp.
- Mitsui & Co. Ltd.
- Nissho Iwai Corp.
- Sumitomo Corp.
- Marubeni Corp.
- ITOCHU Corp.
- Kanematsu Corp.

Note: Product cover images may vary from those shown
Note: Product cover images may vary from those shown

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