S&P raises Mitsubishi Materials outlook to positive

Standard & Poor's said it revised to positive from stable the outlook on its BB long-term corporate credit rating on Mitsubishi Materials Corp. based on the company's increasing level and stability of cash flows and expectations for further improvement in the company's financial profile.

At the same time, S&P said it affirmed its long-term corporate credit and BB+ senior unsecured debt ratings on the company.

Mitsubishi Materials' companywide revenues and cash flows are sound as it has strengthened its business structure to balance decreased profits in some segments with earnings from stronger areas, the agency noted.

The company's ratio of total debt to capital is expected to improve, dropping to around the 60% mark at March 31 from 65.9% as at March 31, 2006, as Mitsubishi Materials continues to amass capital through retained earnings, despite the weaker pace of debt reduction due to the company's relatively large appetite for capital investments, which include ongoing maintenance and renewals, the agency added.

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