Moody's ups Mitsubishi Motors outlook to stable

Moody's Investors Service said it changed to stable from negative the outlook for the Ba3 long-term debt ratings of Mitsubishi Motors Corp. and its supported subsidiaries, Mitsubishi Motors Credit of America Inc. and MMC International Finance (Netherlands) BV.

The outlook change reflects Moody's expectation that Mitsubishi Motors's credit profile is likely to continue improving over the intermediate term, as a result of the company's profitability recovering due to improving cost structures and its market position increasing due to global introductions of new models.

Mitsubishi Motors's profitability experienced pressures in the fiscal year ended March 2005, due largely to recall-related issues; however, under its turnaround plan announced in January 2005, the company has steadily reversed its negative profitability trend, the agency said. Its consolidated operating profit for the third quarter of fiscal 2006 improved to ¥1.6 billion from a ¥23.3 billion loss in the same period of the previous year.

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