TOKYO - Mitsui O.S.K. Lines, Ltd. (MOL; President: Akimitsu Ashida) today announced that the Japan Credit Rating Agency, Ltd. (JCR) has upgraded the ratings MOL-issued bonds from A to A+, effective November 24. This is the second consecutive year that MOL's bond rating has been upgraded.
JCR cited the following major reasons for the upgrade:
First, while MOL generates stable profits through bulkship operations that are often covered by long-term contracts, containership operations have become much more profitable as a result of changes in the industrial structure, supply and demand balance and cost structure. These factors contributed to MOL's recent improvement in profitability.
Second, the current business environment indicates that MOL can weather difficulties such as exchange rate fluctuations and increased bunker oil prices, and the company expects a second year of all-time record profits.
Third, improved profitability has resulted in a stronger financial structure. MOL plans to invest in 243 new vessels (with the value of \1.16 trillion) between now and 2009, and its long-term contracts serve as a hedge to business risks.
Finally, the risk of a decline in the market has decreased, thanks to a more stable industrial structure and increasing demand for shipping services. The company expects to maintain strong profitability, which will contribute to a continually improving financial structure in the foreseeable future.
For further information, please contact:
Mitsui O.S.K. Lines, Ltd.
General Manager, Investor Relations Office
Hidekazu Kuwamoto
Tel: 81-3-3587-6224
Fax: 81-3-3587-7734
Email: iromo@mail.mol.co.jp