JCR has affirmed the BBB/Stable rating on the senior debts of the issuer.

Issuer: Futaba Industrial Co., Ltd. (7241)
Senior debts: BBB/Stable

<Rationale>
Futaba Industrial Co. Ltd. is parts maker and supplies those to Toyota Corporation and group companies mainly. It appears that the Company's earnings jumped in FY 2009 ended March 31, 2010, compared with the previous fiscal year. Its earnings will continue to recover, given its successful efforts to improve its earnings structure. The Company's interest bearing liabilities are expected to decrease, as it intends to make its operations more efficient and make capital investments within the amount of depreciation. JCR will watch whether the Company will be removed from the designation as Security on Alert by the Tokyo Stock Exchange, in order to confirm improvements in its internal management system. Also JCR considers it will take a few years for the Company to fully establish management and production systems in the same way as Toyota Corporation and will watch how the Toyota group companies will support the Company and its relationship with financial institutions hereafter.