S&P affirms Mitsubishi Motors

Standard & Poor's said it affirmed its CCC+ long-term corporate credit rating and senior unsecured debt ratings on Mitsubishi Motors Corp. and removed the ratings from CreditWatch, where they were placed on Dec. 1 with positive implications.

The outlook on the long-term rating is positive.

S&P said the positive outlook reflects the progress, albeit limited to date, that Mitsubishi Motors has made in operational and financial improvement and the rating could be raised within one-to-two years if Mitsubishi Motors continues to improve its profitability and cash flow as outlined in its revitalization plan and reduces its heavy dependence on external financing.

"Mitsubishi Motors faces weak sales and low production capacity utilization in North America and the profitability pressures in the most lucrative geographic segment of Asia and other regions [excluding Japan, North America and Europe] is a concern," said S&P credit analyst Chizuko Satsukawa.

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