S&P rates Orix notes A-

Standard & Poor's said it assigned an A- long-term foreign-currency debt rating to Orix Corp.'s senior notes.

The outlook is stable.

The agency said the rating reflects Orix's standing as one of Japan's largest general finance companies, its business and geographic diversification and its relatively solid customer base in the domestic leasing business, consisting mainly of small and midsize enterprises. Additionally, Orix has been strengthening its capitalization through steady profit accumulation and its debt-to-equity ratio improved to 5.8x at September from 8.5x in March 2004.

In the medium term, S&P predicted that intensifying competition in the lease and loan segments will likely pressure Orix's profitability and said that managing business risks on a company-wide basis will become increasingly important for Orix given its increasing dependence on businesses that have relatively volatile profitability.

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