NEW YORK-Moody’s Investors Service, New York, has assigned an investment grade rating of A3 to a $2 billion medium-term note program by NEC Corp. in Tokyo and NEC Industries plc in London.
“In spite of expectations for continuation of a severe competitive environment, Moody’s believes NEC’s strong market positions across broad and technology-based product lines, (coupled) with cost-cutting efforts, together with (the) expanding information/telecommunications market, should enhance NEC’s revenue growth and improve profit margins,” the rating agency said.
“NEC’s performance in its Communications Systems and Equipment Division is likely to be more stable due to NEC’s established market position, the accelerating demand for the products and [NEC’s] strong technological basis in telecommunications infrastructure as well as mobile communications terminals,” said the Moody’s report, written by Tatsuya Mizono, vice president of ratings, in Tokyo, and Alfred J. Pastore, managing director of industrial ratings, in New York.
