S&P: Ricoh on negative watch

Standard & Poor's said it placed its A+ long-term corporate credit ratings and senior unsecured debt rating on Ricoh Co. Ltd. and its group companies on CreditWatch with negative implications. At the same time, S&P said it affirmed its short-term corporate credit ratings on the companies.

The CreditWatch placements reflect S&P's view that Ricoh is more likely to take a longer time than expected to improve its financial risk profile, because weak demand for its imaging and solutions products - such as copiers and printers - and the yen's appreciation against major currencies are hurting its profitability.

S&P said it will resolve the CreditWatch placements on Ricoh group companies after confirming Ricoh's progress in restructuring and the earnings outlook of its U.S. operations, and considering the likelihood Ricoh will improve its profitability and financial risk profile. Any downgrade of Ricoh is likely to be limited to one notch, the agency said.

S&P said it also placed its A+ long-term corporate credit and debt ratings on Ricoh Leasing Co. Ltd. on CreditWatch with negative implications.

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