S&P upgrades Sega

Standard & Poor's said it raised its long-term corporate credit rating on Sega Corp. to BB from B, reflecting a substantial improvement in the company's financial performance and debt reduction.

S&P said the upgrade also incorporates the prospective positive affects of the scheduled integration with major slot-machine company Sammy Corp.

The outlook is positive.

Sega suffered net losses for the five consecutive years until fiscal 2001 (ended March 31, 2002) due to large losses from its home video game business and write-offs relating to its withdrawal from home video game console manufacturing. However, S&P said due to restructuring efforts and the sound performance of arcade game machine sales, the company's overall performance has been improving, posting net profit for the past two fiscal years.

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