Risk of Deterioration in Financing Conditions, Interest Rates and Credit Ratings
First written in FY2016. 8 of 15 entries say "Worsened", first in FY2022. Latest entry: FY2026-H1.
Hitachi moved to the "Worse" side of this theme in 2022, 3 years before the typical company in this theme (2025).
The whole theme swung hardest in 2025: 12 of 49 companies on the "Worse" side.
21 other companies' latest entry also says "Mitigated".
- FY2026-H1MitigatedAnnual report
「During the interim consolidated accounting period, the company's bond ratings (long-term/short-term) from Moody's Japan K.K. changed from A3/P-2 to A2/P-1, while its long-term bond rating from Rating and Investment Information, Inc. changed from AA- to AA.」
Moody's long- and short-term ratings changed from A3/P-2 to A2/P-1, and R&I's long-term rating changed from AA- to AA. - FY2025MitigatedAnnual report
「Interest income decreased by ¥6.7 billion year on year to ¥32.0 billion, while interest expense decreased by ¥24.0 billion to ¥46.9 billion.」
Annual interest expense decreased from ¥70.9 billion in the previous fiscal year to ¥46.9 billion, reducing the impact of rising interest rates and financing costs in the current fiscal year. - FY2025-H1MitigatedAnnual report
「Interest income increased by ¥2.0 billion year on year to ¥21.7 billion, while interest expense decreased by ¥6.8 billion to ¥30.7 billion.」
Interest expense for the interim period decreased by ¥6.8 billion year on year to ¥30.7 billion, temporarily reducing the impact of interest rates and financing costs, which had increased through the previous fiscal year. - FY2024WorsenedAnnual report
「Interest income increased by ¥13.1 billion year on year to ¥38.7 billion, while interest expense increased by ¥19.6 billion to ¥70.9 billion.」
While interest-bearing debt decreased, interest expense increased by ¥19.6 billion year on year to ¥70.9 billion, reflecting a greater annual impact from rising interest rates and financing costs. - FY2024-Q3WorsenedAnnual report
「Interest income increased by ¥12.3 billion year on year to ¥29.9 billion, while interest expense increased by ¥19.5 billion to ¥54.9 billion.」
Interest expense increased by ¥19.5 billion year on year to ¥54.9 billion, further quantifying the impact of rising interest rates and borrowings on financing costs. - FY2024-Q2WorsenedAnnual report
「Interest income increased by ¥8.4 billion year on year to ¥19.7 billion, while interest expense increased by ¥16.1 billion to ¥37.5 billion.」
Interest expense increased by ¥16.1 billion year on year to ¥37.5 billion, and the impact of borrowings and rising interest rates on financing costs increased. - FY2024-Q1WorsenedAnnual report
「Interest income increased by ¥5.9 billion year on year to ¥11.2 billion, while interest expense increased by ¥8.3 billion to ¥17.6 billion.」
Interest expense increased by ¥8.3 billion year on year to ¥17.6 billion, quantifying the impact of borrowings and rising interest rates on financing costs in the first quarter as well. - FY2023WorsenedAnnual report
「Interest income increased by ¥10.1 billion year on year to ¥25.6 billion, while interest expense increased by ¥24.2 billion to ¥51.3 billion.」
The risk associated with rising interest rates and reliance on borrowings was reflected in annual interest expense of ¥51.3 billion, an increase of ¥24.2 billion year on year. - FY2023-Q3WorsenedAnnual report
「Interest income increased by ¥6.2 billion year on year to ¥17.6 billion, while interest expense increased by ¥15.8 billion to ¥35.3 billion.」
Interest expense increased by ¥15.8 billion year on year to ¥35.3 billion, further quantifying the impact of borrowings and rising interest rates on financing costs. - FY2023-Q2WorsenedAnnual report
「Other income decreased by ¥30.6 billion year on year to ¥74.5 billion, despite the recognition of gains on business reorganisation and other items following the loss of control of Hitachi Construction Machinery Co.,Ltd. Other expenses increased by ¥113.2 billion year on year to ¥134.4 billion, mainly due to costs associated with the transition to a risk-sharing corporate pension plan and the recognition of impairment losses at Hitachi Energy resulting from higher discount rates caused by sharp interest-rate increases and other factors.」
Impairment losses at Hitachi Energy arose from sharp increases in interest rates and discount rates, bringing other expenses to ¥134.4 billion, up ¥113.2 billion year on year. Interest expense also increased by ¥8.4 billion year on year to ¥21.4 billion. - FY2022WorsenedAnnual report
「The company is exposed to the risk of rising interest rates because it relies on borrowings from banks and other financial institutions for its financing.」
In addition to the existing financing environment and credit-rating risks, the company explicitly identified the risk of rising interest rates and the possibility of higher financing costs associated with increased borrowings. - FY2020-Q2MitigatedAnnual report
「Regarding the bond credit ratings held by the company, on 29 August 2019, Rating and Investment Information, Inc. (R&I) upgraded the long-term rating from A+ to AA- and the short-term rating from a-1 to a-1+.」
R&I's upgrades to the long- and short-term ratings improved external assessments of the risk of deterioration in the financing environment and credit ratings. - FY2019RestatedAnnual report
「The company believes that, at its current credit-rating levels, it will continue to be able to raise the necessary funds in domestic and overseas capital markets, and will work to maintain and improve those rating levels.」
The company has reaffirmed its policy of maintaining and improving the financing environment and credit-rating levels. As of the end of March 2019, its long-term ratings were Moody's A3, S&P A- and R&I A+. - FY2017RestatedAnnual report
「The company believes that, at its current credit-rating levels, it will continue to be able to raise the necessary funds in domestic and overseas capital markets, and will work to maintain and improve those rating levels.」
While indicating the risk of deterioration in the financing environment and credit ratings, the company has adopted a policy of maintaining and improving its A3, A- and A+ ratings. - FY2016First statedAnnual report
「A deterioration in the global economy could adversely affect the Group's cash flows from operating activities, business performance and financial position and, consequently, its bond credit ratings.」
As of the end of March 2016, the credit ratings were Moody's A3, S&P A- and R&I A+. The undrawn balance under commitment lines was ¥553.0 billion.