Moody's confirms Ricoh

Moody's Investors Service said it confirmed its A1 long-term debt ratings of Ricoh Co., Ltd. and the A1 long-term ratings and prime-1 short-term ratings of its supported subsidiaries.

The outlook is negative.

The confirmation is based on a view that the acquisition of IKON Office Solutions, Inc., which has a Ba2 corporate family rating under upgrade review, will help strengthen Ricoh's business franchise in target markets, Moody's said. The agency said Ricoh will be able to restore its solid financial structure and achieve sufficient financial flexibility now that it has completed the debt-financed acquisition.

However, Moody's said it expects weaker demand in global office equipment markets due to the current recession, which is the reason for the negative outlook.

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