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Mitsubishi: Market Conditions Cause Downgrading

3 April 2000

Mitsubishi International Corporation: Despite Strong Corporate Performance, Market Conditions Cause Downgrading

    NEW YORK--March 31, 2000--Mitsubishi International Corporation noted that, despite strong corporate performance, poor market conditions in Japan and Asia have resulted in today's decision by Fitch IBCA to change the company's rating from F1+ to F1.
    The company also noted the following specific comments from the Fitch IBCA analysis.
    1. MIC's U.S. commercial paper rating benefits from a keepwell agreement provided by its parent company, Mitsubishi Corporation, and is fully backed by Mitsubishi Corporation as well as by its own substantial liquid assets.
    2. Mitsubishi Corporation's gross trading profits have remained stable during the past five years despite poor market conditions in Japan, and the company remains the strongest of the leading integrated trading companies in its industry by key relevant measures, including earnings and return on assets.
    3. Fitch IBCA points out that Mitsubishi Corporation is implementing various profit improvement and cost reduction measures and is in the process of reshaping its businesses to ensure future its profitability.
    Thus, despite the downgrading, the analysis points to positive indicators of future growth.