Matsushita Electric Industrial Co.'s A-plus long-term and A-1 plus short-term ratings have been placed on CreditWatch with negative implications, Standard & Poor's Corp. said Thursday.
The move reflects S&P's rising concerns over the company's ability to recover its profitability and cash flows, and to service its financial commitments at a level commensurate with the current ratings, the U.S. credit-rating agency said.
"Standard & Poor's expects Matsushita to remain under pressure from the harsh business environment in Japan over the next few years, given that the company derives almost 50 percent of its sales from the domestic market," said Takahiro Saimen, a credit analyst at S&P.
"We will resolve the CreditWatch placement after evaluating the likelihood of a recovery in Matsushita's profitability and cash flow, and the company's ability to maintain its competitiveness and market position over the longer term."
Matsushita, known for its Panasonic and National brands of consumer electronics, expects a consolidated operating loss of 227 billion yen in fiscal 2001, up from its earlier forecast loss of 160 billion yen.
Fukui to join Fujitsu
Fujitsu Ltd. said Thursday it will appoint former Bank of Japan Deputy Gov. Toshihiko Fukui as one of its seven board members in early summer as part of a major management reshuffle.
Japan's largest computer manufacturer said the appointment will be formalized at a general shareholders' meeting in late June.
Fukui, 66, held the No. 2 post at the BOJ from December 1994 to March 1998.
He currently serves as director of the Fujitsu Research Institute and is vice chairman of the Japan Association of Corporate Executives (Keizai Doyukai).
Under the management change, Fujitsu will reduce the number of board members to seven from the current 32 and adopt an operating officer system for speedier decision-making, the firm said.