Asahi Glass Co. has filed a shelf registration at the Japanese Ministry of Finance to issue up to JPY 100 billion of domestic bonds, documents at the ministry showed 6 September 2005. The issue receiv…
Asahi Glass Co. has filed a shelf registration at the Japanese Ministry of Finance to issue up to JPY 100 billion of domestic bonds, documents at the ministry showed 6 September 2005. The issue received a preliminary rating of AA from Japan Rating and Investment Information, Inc., (R&I) on 9 September 2005. Asahi Glass“s shelf is valid for two years starting from 10 September 2005. In its rationale, R&I noted that the firm“s indebtedness had reached high levels as it pursued “aggressive investment as well as merger and acquisition activities”. According to R&I, earnings in glass for CRT and small to medium-sized liquid crystal displays are declining, so it is essential that Asahi Glass develop a new business model, such as E&E (electronics and energy), in order to keep its rating. R&I also said that as it continues its large scale capital investment, Asahi Glass “will have to continue to promote improvement in its financial structure as it balances investment and returns”.