S&P revises SoftBank view to negative

S&P said it revised the outlook for SoftBank Group Corp. to negative from stable following the announcement the group plans to buy back a considerable amount of shares.

“We revised the outlook for two reasons. First, on March 13, 2020, the company announced plans to buy back up to ¥500 billion of shares in the midst of a plunge in stock markets, which raises questions over its commitment to financial management that prioritizes its financial soundness and the credit ratings on the company. Second, the company may struggle to maintain a level of financial soundness that is commensurate with the long-term credit rating if continued volatility in stock prices causes its investment assets to lose substantial value,” said S&P in a press release.

The agency affirmed the BB+ rating on the company and its long-term senior unsecured debt and the B+ subordinated debt rating.

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