Moody’s might drop Sumitomo

Moody's Japan K.K. said it placed the A2 issuer and senior unsecured ratings as well as the Prime-1 short term rating of Sumitomo Corp. and its supported subsidiaries under review for downgrade, following the company's announcement that it will report about ¥85 billion of net loss for the fiscal year ending March 31, 2015.

"The review is prompted by Moody's increasing concern over Sumitomo Corp's ability to generate adequate earnings and cash flow, as well as its ability to reduce its leverage to a level consistent with its A2 rating," Moody's vice president and senior credit officer Maki Hanatate said in a news release.

"The rating action also reflects Moody's growing concern over Sumitomo Corp's risk management, as it relates to investment selection and timing."

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