Nippon Electric Glass: JCR keeps senior debts at AA-

JCR reiterated its AA- rating with a “stable“ outlook on the senior debts of Japanese Nippon Electric Glass Co Ltd. on 29 November, as well as the preliminary AA- and J-1+ ratings on its shelf regis…

JCR reiterated its AA- rating with a “stable“ outlook on the senior debts of Japanese Nippon Electric Glass Co Ltd. on 29 November, as well as the preliminary AA- and J-1+ ratings on its shelf registration and commercial paper programme, respectively. According to an agency press release: Nippon Electric Glass Co., Ltd. is a large manufacturer of glass for display. Currently, the demand for liquid crystal panels is in the adjustment phase, but over the medium to long run the market can achieve a sustainable growth. In addition, the industry of LCD glass substrates has rarely experienced price drops due to high entry barriers and cautious investment policies, and still enjoys high margins. Therefore, JCR considers that substantial changes in industrial and earnings structures are unlikely for the near term. While large-scale capital investments continue to be made to respond to the demand for the glass substrate, there are signs of improvements in the financial structure of the company thanks to its strong earnings power and high cash flow generation capacity. The company firmly adheres to the conservative financial policy, and JCR considers that it will maintain the good financial structure.