S&P cuts Ricoh, subsidiaries

Standard & Poor's said it lowered its long-term corporate credit and debt ratings on Ricoh Co. Ltd. one notch to A from A+.

The agency said the downgrade reflects its view that Ricoh's expected losses in fiscal 2011, ending March 31, are likely to weaken measures of its financial performance, reducing prospects for Ricoh's profitability and cash flow to swiftly recover to levels commensurate with the previous rating.

S&P said it also lowered the long-term ratings on Ricoh Leasing Co. Ltd. and Ricoh's overseas subsidiaries. The agency removed the long-term ratings on the Ricoh group companies from CreditWatch with negative implications, where they were placed on Nov. 7. The outlook on the long-term corporate credit ratings is negative.

The agency said it also affirmed the A-1 short-term corporate credit ratings on the companies.

S&P said it believes a continuation of the current harsh business environment, including the strong yen, may delay Ricoh's ability to improve measures of its profitability and cash flow.

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