S&P changes Sumitomo to stable

S&P said it revised to stable from negative its outlook on the long-term corporate credit rating on Sumitomo Corp.

The agency affirmed the A- long-term corporate credit and senior unsecured debt ratings and A-2 short-term corporate credit rating on the company.

S&P said the revision reflects a view there is a heightened likelihood that the company's profitability and capital adequacy will remain comfortably within tolerances for the current ratings.

“We base this on our view that earnings from its resource and energy businesses are less likely than before to drop drastically, as we assume that commodity prices will remain stable in the next two years or so,” the agency said in a news release.

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