-S&P increases rating on Softbank to BBB-

Internet Business News
07-25-2011
-S&P increases rating on Softbank to BBB-

INTERNET BUSINESS NEWS-(C)1995-2011 M2 COMMUNICATIONS

25 July 2011 -- S&P today upgraded to BBB- from BB+ its long- term corporate credit and debt ratings on Japanese telecom and Internet company Softbank Corp (TYO:9984).
The ratings were also removed from credit watch.

The long-term corporate credit rating bears a "positive" outlook, meaning further uplifts could follow in the next year or two.

The company has executed a syndicated loan agreement with lenders to refinance the whole business securitisation (WBS) of its mobile business with the refinancing expected to be completed by November.

The rating service now includes the mobile phone business into its assessment of Softbank and has raised the corporate rating of the telecom company to BBB- to reflect its improved financial risk profile.

The "positive" outlook assumes Softbank will record steady income growth in its mobile and other business areas, backed by its good marketing, increased brand recognition and enhanced network capacity and quality, S&P said.

The company is also expected to retain its moderate financial policy and conservatively manage its business expansion. The cash flow from the mobile business will also allow Softbank to cover its large capital expenditures and to gradually repay its debts, the agency added.

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