S&P upgrades Hitachi

S&P said it raised its long-term issuer credit and senior unsecured debt ratings on Hitachi Ltd. one notch to A from A-.

The agency also raised the short-term issuer credit and commercial paper program ratings on Hitachi one notch to A-1 from A-2.

In addition, S&P said it upgraded the three overseas Hitachi subsidiaries and their rated debt.

The outlook is stable.

“The upgrades reflect our expectation that, in addition to fewer unprofitable businesses following ongoing business restructuring, robust operating performance in Hitachi's core businesses such as information and telecommunication systems and social infrastructure and industrial systems is likely to fuel a continued gradual improvement in profitability thanks to various measures to further strengthen competitiveness,” the agency said in a news release.

“Hitachi is likely to maintain sound financial standing thanks to disciplined financial management and despite expected large outlays for investments in growth, mainly overseas, and an arbitration claim, in our view.”

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