S&P: Sojitz still on positive watch

Standard & Poor's said its BB- long-term corporate credit and BB+ senior unsecured debt ratings on Sojitz Corp. remain on CreditWatch with positive implications as the company moves ahead with its plan to improve its capital quality.

The agency said it placed Sojitz on CreditWatch on April 28, following the announcement of its plan to issue ¥300 billion in convertible bonds and buy back its preferred stock worth ¥560.4 billion.

S&P added that the plan was ratified at the company's shareholders' meeting and the conversion of its convertible bonds is now under way, noting that upon completion of the plan, Sojitz's ratio of preferred stock to capital will likely be very low, which should greatly improve its capital quality and have a positive impact on the company's credit quality.

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