Japan-Based Marubeni Corp.'s U.S. Dollar-Denominated Straight Bonds Rated 'BBB'

TOKYO (S&P Global Ratings) April 24, 2019--S&P Global Ratings today said it 
has assigned its 'BBB' long-term issue credit rating to Japan-based Marubeni 
Corp.'s (BBB/Positive/--) five-year U.S. dollar-denominated unsecured straight 
bonds (see list below). The issue rating on the bonds is equal to the 
long-term corporate credit rating on Marubeni, a general trading and 
investment company. This is because the ratio of Marubeni's total secured debt 
plus its subsidiaries' debt to total debt (propriety debt ratio) is below 50%, 
the threshold for us to consider notching down the issue rating. We believe 
this issuance will help further diversify Marubeni's funding sources by 
attracting more overseas investors.

We base our long-term rating on Marubeni on its diversified portfolio and the 
strong base of its trading and investment businesses. The rating also reflects 
our view that Marubeni's earnings are increasingly stable, particularly in the 
nonresource segment, thanks to the restructuring of its U.S. grains business 
and agricultural chemicals business. In addition, we believe Marubeni's free 
cash flow is likely to remain positive with sustained declining levels of debt 
as the company maintains its conservative financial discipline in the next 
year or two. In our view, the company's adjusted capital (risk buffer) is 
likely to increase over a similar period toward the amount of risk-based 
capital (risk-weighted assets) required under our 'BBB' stress scenario.
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