Moody's downgrades Sojitz to Ba1

Moody's Japan K.K. said it downgraded Sojitz Corp.'s issuer rating to Ba1 from Baa3.

The outlook is stable.

Moody's said the downgrade reflects its view that Sojitz's high debt leverage and weak profitability, while expected to improve, is anticipated not to be sufficient to support the investment grade rating of Baa3.

The downgrade also reflects its relatively weak franchise, as the smallest of the seven Moody's rated Japanese trading companies by revenues, the agency said.

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