S&P cuts Mitsubishi Motors

Standard & Poor's said it lowered its rating on Mitsubishi Motors Corp.'s (CC/negative/--) senior unsecured bonds to CCC+ from B-. The outlook on this issue is negative.

"The downgrade of MMC's senior unsecured bonds reflects Standard & Poor's view that recent disclosures of additional safety defects - which have led to further damage to MMC's already weak brand image and plummeting domestic sales - call into question MMC's viability," said Chizuko Satsukawa, a credit analyst at S&P.

Over the past few weeks, there has been a series of disclosures of additional, previously concealed safety defects and recalls on a large number of Mitsubishi Motors vehicles, as well as those of its affiliate, Mitsubishi Fuso Truck and Bus. Moreover, Mitsubishi Motor's former president and other officials were arrested on charges related to a cover-up of defects suspected in a fatal accident. Publicity over these developments has contributed to a further tainting of the company's brand image.

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