26 October 2006 11:44 [Source: ICIS news]
SINGAPORE (ICIS news)--Moody’s has assigned an A3 rating to Mitsui Chemical’s Series 35 2.09% senior unsecured bonds due 2016, with a stable outlook due to its lead position in Asia and improved balance sheet structure, the ratings firm said on Thursday.
The rating is based on the Japanese chemicals major’s leading position in basic chemicals and petrochemicals in Asia, and its stable business fundamentals, supported by a clear strategy focused on its core businesses, Moody’s said.
It also reflects the company’s steady improvement of its balance sheet structure, Moody’s said.
As one of the leading integrated chemicals companies in Japan, Mitsui maintains strong market positions in many of its core products such as purified terephtalic acid (PTA), phenol, bis-phenol A (BPA), polypropylene, urethane and other functional materials, it noted.
In its basic chemicals business, the company was accelerating the expansion of its overseas operations for aroma chain products such as PTA, phenol and BPA, in response to growing demand, particularly in Asia outside of Japan, Moody’s added.
It said that Mitsui’s performance materials areas - such as functional polymers, IT-related materials and healthcare materials - should also retain their high growth potential, supported by technological advantages and growing demand in non-Japanese Asian markets.
While Mitsui continues to strategically invest in core business areas to strengthen its market position in Asia outside of Japan, Moody’s said that it will be able to balance its financial and business fundamentals.
Mitsui Chemicals had consolidated sales of Yen1,472.4bn ($12.4bn/€9.8bn) for the fiscal year ended March 2006.
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