Fitch rates Lopro bonds BB

Fitch Ratings said it assigned an expected rating of BB to Lopro Corp.'s ¥15 billion euro-yen bonds due on Sept. 22, 2014, changed Lopro's outlook to stable from negative and affirmed its long-term rating at BB and short-term rating at B.

Fitch said the change in outlook reflects improvements in Lopro's ongoing severe asset quality problems, current and potential liabilities arising from legal action brought against the company, shrinking business volumes, weak cash flow, impaired franchise and limited access to cheap funding.

While the rating is also constrained by these factors Fitch said it takes into account Lopro's strong capitalization, large stock of cash and high reserves.

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