S&P downgrades Mitsubishi

S&P said it lowered the long-term corporate credit rating on Mitsubishi Motors Corp. to BB-.

The long-term rating remains on CreditWatch with negative implications.

The negative watch began in April after the company revealed it falsified fuel-consumption test data, S&P explained.

The downgrade reflects a view that Mitsubishi Motors had serious deficiencies in its companywide risk-management regime and internal governance, the agency said.

Regarding risk-management standards, the company has not successfully institutionalized comprehensive policies that effectively identify, monitor, select and mitigate key risks, S&P said.

The continued negative watch is due to the significant damage inflicted on the company’s brand recognition by the most recent misconduct, which negatively affects its social credibility, business competitiveness and its capacity to generate earnings, the agency said.

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