Moody's ups Orix view to positive

Moody's Investors Service said it has revised the outlook of Orix Corp.'s Baa1 senior unsecured debt, senior unsecured medium-term note and long-term issuer ratings to positive from stable.

This outlook change is based upon Moody's increased confidence in the prospect of Orix maintaining reasonable financial performances from its highly diversified business segments, particularly based on its strategic emphasis on domestic automobile leasing. The agency noted that this segment is likely to continue contributing to a growth in Orix's consolidated earnings and profitability in a stable manner, because it provides value-added services including maintenance leases to its domestic small-to-medium sized clients.

Going forward, Moody's said it will monitor Orix's corporate resource allocation strategy and the conservatism of its overall risk management - which, in Moody's opinion, is the key to the stability of its overall operational performance - amid the company's unchanged engagement in several strategic investments, reliance on short-term funding and relatively high leverage profile without a main bank relationship.

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