S&P boosts Taiheiyo

Standard & Poor's said it raised its corporate credit rating on Taiheiyo Cement Corp. by one notch to BB+ from BB and its long-term senior unsecured debt rating by two notches to BBB- from BB, based on expectations for enhanced earnings and cash flow generation as well as the company's improved financial profile.

The outlook on the long-term corporate credit rating is stable, the agency said.

"Taiheiyo Cement's overseas operations, particularly those in the U.S., are helping the company strengthen its earnings base, which should contribute to the company's overall earnings and cash flow and compensate for sluggish domestic operations amid a challenging business environment in Japan," said S&P credit analyst Makiko Yoshimura.

"The company's financial profile has also improved, backed by ongoing cost reductions and product price increases."

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