Moody's may cut Mitsubishi Motors

Moody's Investors Service said it placed Mitsubishi Motors Corp.'s Ba3 senior debt ratings under review for possible downgrade.

The review was prompted by DaimlerChrysler AG's announcement Friday that it has decided to not participate in a capital increase planned by Mitsubishi Motors and to cease further financial support for the company.

Subsequently, three major Mitsubishi Group companies, Mitsubishi Heavy Industries Ltd. (Baa1), Mitsubishi Corp. (A3) and the Bank of Tokyo-Mitsubishi Ltd. (A2) announced that they will continue to support Mitsubishi Motors. However, no further details are available.

Moody's said the review will focus on the expected support from the Mitsubishi Group companies, including size, timing and affect on the company's operations going forward. The rating agency will also assess how Mitsubishi Motors' restructuring plan will proceed without additional DaimilerChrysler involvement.

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