Fitch rates ORIX notes A-

Fitch Ratings said it assigned a rating of A- to ORIX Corp.'s $500 million fixed-rate senior unsecured notes.

The proceeds will be used for general corporate purposes, including investments, Fitch said.

The rating on the notes is aligned with the long-term issuer default rating of ORIX because the notes constitute the company's unsubordinated and unsecured obligations and rank pari passu with all of its other unsecured and unsubordinated obligations, Fitch said.

The notes are structurally subordinated to debt obligations of ORIX's subsidiaries.

The ratings reflect ORIX's established company profile, modest leverage, sound liquidity position and the stability of recent performance, the agency said.

Fitch said it believes ORIX is well positioned to maintain its sound financial fundamentals, benefiting from business diversity and lower reliance on interest income from financing activities in Japan's low interest-rate environment.

The ratings also consider the complexity of ORIX's business model and organizational structure as the company expands and moves across sectors and geographies, which heightens risk management and governance challenges, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.