S&P revises Mitsubishi Motors to stable

S&P said it revised the outlook on its BB- long-term corporate credit rating on Mitsubishi Motors Corp. to stable from negative.

At the same time, the agency affirmed the long-term corporate credit rating.

S&P said it bases the outlook revision on its view that the automaker's operating performance and financial standing face a reduced risk compared with previously of materially deteriorating again in the coming one to two years.

“This is because sales of Mitsubishi Motors' domestic unit are bottoming out, having plunged as a result of its admission that it falsified fuel-economy test data, and are unlikely to decline further, in our view,” the agency said in a news release.

“Also, under its new management it is establishing internal controls that put more focus on profitability.”

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