Moody's affirms ORIX

Moody's Investors Service said it affirmed the A3 rating to ORIX Corp.'s dollar-denominated senior unsecured bonds due 2016.

The company also expects to offer an additional $400 million senior in fungible unsecured bonds due 2016.

After this issue, the amount of dollar-denominated senior unsecured bonds due 2016 will be $800 million.

The outlook is negative.

The rating reflects the company's diversified franchise, which allowed it to weather the difficulties of the last two years, while reducing leverage and improving its wholesale funding profile, Moody's said.

The ability to remain profitable - even while recording large losses due to its real estate exposures - reflects the diversified nature of the company's operations, the agency said.

The negative outlook reflects ongoing challenges that the company faces as a result of weak profitability in two key divisions - corporate financial services and real estate, Moody's said.

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