Standard & Poor's Ratings Services announced that it had assigned its BBB+ long term debt ratings to Nippon Steel Corporation's (BBB+ Negative) issue of JPY 10 billion domestic senior unsecured bonds series 69, 0.556%, due on June 20th 2019 and JPY 20 billion domestic senior unsecured bonds series 70, 0.951%, due on June 20th 2022.

The ratings on Japan based integrated steel maker Nippon Steel reflect its strong competitive positions in global high grade steel markets, which is due to the company's technological leadership in the manufacture of high-grade products, and its long standing relationships with its Japanese customers in autos, consumer electronics, and other manufacturing.

The rating also incorporates the positive effect on Nippon Steel's business risk profile from the planned merger with Sumitomo Metal Industries Limited in October 2012. Factors that offset these strengths include vulnerable demand in the domestic and Asian steel markets, squeezed margins, and weakening financials.

S&P said that "The company's financial position faces further pressure due to the merger with Sumitomo Metals, which has, in our view, a weaker financial risk profile than that of Nippon Steel."

Source - Standard & Poor's

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