Moody’s revises Mitsubishi Electric view to negative

Moody’s Investors Service said it affirmed Mitsubishi Electric Corp.’s A1 issuer rating and changed the outlook to negative from stable.

The outlook change to negative reflects Mitsubishi’s overall margin being under pressure from a fall in profit in its key industrial automation systems segment.

The ratings affirmation recognizes the stabilizing effect from Mitsubishi’s diversification that helps mitigate its exposure to the cyclicality in some of its businesses. The other businesses, however, aren’t able to fully offset the loss of the decline in the industrial automation segment, which accounts for almost half of Mitsubishi’s total profit. The coronavirus outbreak adds further uncertainty and pressure, Moody’s said.

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