S&P: IHI unchanged

Standard & Poor's said its ratings on IHI Corp. (BB+/stable) would not be affected by the company's revisions last week of its earnings forecast for fiscal 2007 and amended fiscal 2006 earnings.

IHI also announced improvement plans for its energy and plant business, the poor performance of which was the primary factor for previously substantial downward earnings adjustments, S&P noted, adding that the latest revisions to IHI's earnings forecast for fiscal 2007 were not substantial.

S&P said it places particular attention on IHI's risk management system and despite the company's improvement plan indicating a stronger focus on candidate project screening, cost control and process scheduling, it is likely to take some time before these improved risk management capabilities can be reflected in the company's credit assessment.

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