Moody's Investors Service Inc. said Tuesday it will review and may downgrade Softbank Corp's Ba3 senior unsecured long-term debt ratings.
"The rating review reflects Moody's growing concern on Softbank's profitability and downward pressure on the market value of its investment portfolio," the U.S. credit-rating agency said.
In the review, Moody's will assess the company's ability to cope with the current difficult operating environment, the possible impact on future financial fundamentals and its strategy to mitigate earnings volatility.
Softbank Corp., based in Tokyo, has said it expects operating losses of 11 billion yen and net losses of 55 billion yen, including 45 billion yen of revaluation losses on securities holdings for the first half of fiscal 2001, ended Sept. 30.