Risks from Variable Interest Rates and Financial Covenants
First written in FY2016. 4 of 8 entries say "Restated". Latest entry: FY2027-H1.
The whole theme swung hardest in 2025: 24 of 80 companies on the "Worse" side.
17 other companies' latest entry also says "Worsened".
- FY2027-H1WorsenedAnnual report
「The company is also in a situation requiring close monitoring of the impact of rising interest rates resulting from policy rate hikes on corporate financing costs and capital investment trends.」
Rising interest rates resulting from policy-rate increases were explicitly identified as a risk that could affect funding costs and capital investment. - FY2026MitigatedAnnual report
「Long-term borrowings to fund large-scale capital investments such as warehouses and vessels are, in principle, arranged at fixed interest rates to reduce the risk of future interest-rate increases. Working-capital borrowings are arranged using a combination of fixed and variable interest rates while monitoring interest-rate trends, in an effort to reduce the interest burden.」
In response to the risk of rising interest rates, large-scale capital investments are financed in principle at fixed rates, while working capital is financed using a combination of fixed and variable rates. - FY2024WorsenedAnnual report
「As the environment points to future interest rate increases, including the lifting of the negative interest rate policy, the company will continue to closely monitor interest rate trends.」
In addition to the existing risks relating to variable interest rates and financial covenants, the end of the negative-interest-rate policy and the prospect of future interest-rate increases were explicitly identified. - FY2023RestatedAnnual report
「Borrowings at floating rates are exposed to interest rate fluctuation risk, but the company hedges this exposure using derivative transactions, including interest rate swaps.」
The risk from variable interest rates is recognised, and hedging with interest-rate swaps continues. - FY2021RestatedAnnual report
「To address this, the company monitors trends in the indicators for each covenant, fine-tunes its management strategy and seeks to strengthen communication with financial institutions.」
The risk relating to financial covenants continues to be recognised, with monitoring of indicators, fine-tuning of management strategy and dialogue with financial institutions serving as countermeasures. - FY2018RestatedAnnual report
「The Group has borrowings subject to financial covenants. However, major changes in the economic and financial environment could result in a breach of those covenants and disrupt transactions with financial institutions.」
The possibility of breaching financial covenants continues to be disclosed as a risk. - FY2017RestatedAnnual report
「The company has borrowings subject to financial covenants, but significant changes in the economic and financial environment could result in a covenant breach and disrupt its dealings with financial institutions.」
The risk relating to financial covenants continues to be disclosed, and hedging variable interest rates with interest-rate swaps is also disclosed. - FY2016First statedAnnual report
「The company has borrowings subject to financial covenants, but significant changes in the economic and financial environment could result in a covenant breach and disrupt its dealings with financial institutions.」
The possibility of breaching financial covenants under borrowing agreements is explicitly disclosed.