S&P downgrades Ricoh

S&P said it lowered its long-term corporate credit and senior unsecured debt ratings on Ricoh Co. Ltd. and the long-term corporate credit rating on Ricoh Finance Corp. to BBB+ from A-.

The outlook is stable.

The agency affirmed the A-2 short-term corporate credit and commercial paper ratings on both companies.

“The downgrade reflects a view that Ricoh is likely to stage a weaker recovery in profitability than we had assumed despite its restructuring efforts, which center on cost reductions, amid harsh business conditions,” S&P said in a news release.

“We also believe key financial ratios for the company are likely to deteriorate more than we had assumed if it steps up growth investments as planned.”

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