S&P Reduces Nippon Steel’s Grading to BBB+

Standard & Poor’s (S&P) announced on Thursday S&P reduced long-term company grading and long-term priors charges of Nippon Steel to BBB+ from A－.

S&P judged there is low possible that Nippon Steel’s profitability and financial index recover with existing grading a few years later when it is hard Nippon Steel passes higher raw material cost on sales price of steel products. S&P recognized Nippon Steel’s account is slightly improving and is expected to improve financial index gradually, which forecasts Nippon Steel’s account is stable.

Moody’s Investors Service announced on Monday the firm reduced long-term debt rating of Nippon Steel to A2 from A1, and the rating of JFE Holdings and JFE Steel to A3 from A2 when it is hard these steel makers passes higher raw material cost on sales prices, but forecasts these companies’ account is stable.

Japanese steel makers are forced to increase charge by such as rising interest rates. S&P said to mull to raise grating of Nippon Steel if Nippon Steel increases sales power for price hike and recovers profitability and financial index more than forecasts of S&P.

Nippon Steel is advancing price hike for automobile and electric-appliance makers due to rising raw material price, and is improving profit by increasing sales volume.