Moody’s upgrades Panasonic

Moody's Investors Service said it upgraded Panasonic Corp.'s long-term senior unsecured debt rating and issuer rating to A3 from Baa1.

The agency also said it changed the outlook to stable from positive.

The upgrades reflect the consideration that Panasonic's operating performance has steadily improved – with increasing signs of stability – over the last several quarters and an expectation that this earnings stability is maintainable, supported by management's focus on maintaining a solid financial profile, Moody’s said.

The upgrades also consider that while improvement in profit margin will be limited in the next 12 to 18 months as the company ramps up investment in growth areas, these investments will contribute to long-term stability in earnings generation, the agency explained.

The company’s leverage also improved to the level appropriate for an A3 rating, Moody’s added.

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