S&P lifts NEC view to positive

Standard & Poor’s said it revised the outlook on the BBB- long-term corporate credit rating on NEC Corp. to positive from stable.

The agency also said it affirmed all of the company’s BBB- long-term and A-3 short-term ratings.

NEC’s profitability and cash flow are likely to improve gradually and gain stability because the company has made steady progress in restructuring its business portfolio, S&P said.

The company is increasing its focus on its information and communications technology services-related business and reducing its exposure to commoditized hardware products, the agency said.

The company’s profitability and cash flow are expected to further improve over the next two years as its business performance rises and it develops new businesses in growth areas along with favorable prospects for the domestic information technology (IT) market, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.