S&P raises Sumitomo

S&P said it raised its issuer and issue ratings for Sumitomo Corp. to A- from BBB+.

“One, we see greater likelihood that Sumitomo's net profit will stay above ¥400 billion in the next one to two years, despite falling prices for natural resources. This is thanks to structural reforms that the company carried out during the Covid-19 pandemic.

“Two, we believe the company will maintain sound finances in terms of the balance between risk assets and capital at a level commensurate with the A- rating. This is thanks to conservative financial management and steady accumulation of net profit. The company has maintained positive free cash flow after shareholder returns for three fiscal years through March 2024,” S&P said in a press release.

The outlook is stable.

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