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Affirmed BBB/Stable on sr.debts of Asahi Printing | May 31, 2010 |
JCR has affirmed the BBB/Stable rating on senior debts of the issuer.
Issuer: Asahi Printing Co., Ltd. (3951)
Senior debts: BBB/Stable
<Rationale>
Asahi Printing Co., Ltd. is a large company which manufactures and sells printed packaging materials for pharmaceutical products and cosmetics. The Company's printed packaging materials for pharmaceutical products have the largest market share in Japan, while its printed packaging materials for cosmetics have one of the largest market shares in Japan. Although slower economic recovery in Japan results in slightly weak demand for the materials for cosmetics, sales of the materials for pharmaceutical products, its main products, have grown steadily because of pharmaceutical market expansion related to Japan's rapidly aging population. The Company has transacted with many pharmaceutical and cosmetics manufacturers over a long period of time and its products including the materials for pharmaceutical products, which require specialized technology and reliability, give the Company a high competitive advantage. The Company has newly built the Toyama-Higashi plant for manufacturing the materials for cosmetics only and completed the renovation of the Toyama plant, where its manufacturing systems are divided into several production lines by grouping products or target market, in order to enhance its competitiveness. Also the Company plans to start the operation of the Toyama-Minami plant for making package inserts in FY 2010 ending March 31, 2011. The Company's financial structure is relatively at a satisfactory level, including 51.8 percent of its consolidated ratio of equity capital to total assets at the end of March, 2010, although its interest bearing liabilities on a consolidated basis increased temporarily due to the construction of the Toyama-Higashi plant. JCR will watch whether the Company can increase its earnings further centering on those of the materials for pharmaceutical products, which are expected to grow over the medium term, including progress in the strengthening its competitiveness as a result of the installation of such production lines.
Issuer: Asahi Printing Co., Ltd. (3951)
Senior debts: BBB/Stable
<Rationale>
Asahi Printing Co., Ltd. is a large company which manufactures and sells printed packaging materials for pharmaceutical products and cosmetics. The Company's printed packaging materials for pharmaceutical products have the largest market share in Japan, while its printed packaging materials for cosmetics have one of the largest market shares in Japan. Although slower economic recovery in Japan results in slightly weak demand for the materials for cosmetics, sales of the materials for pharmaceutical products, its main products, have grown steadily because of pharmaceutical market expansion related to Japan's rapidly aging population. The Company has transacted with many pharmaceutical and cosmetics manufacturers over a long period of time and its products including the materials for pharmaceutical products, which require specialized technology and reliability, give the Company a high competitive advantage. The Company has newly built the Toyama-Higashi plant for manufacturing the materials for cosmetics only and completed the renovation of the Toyama plant, where its manufacturing systems are divided into several production lines by grouping products or target market, in order to enhance its competitiveness. Also the Company plans to start the operation of the Toyama-Minami plant for making package inserts in FY 2010 ending March 31, 2011. The Company's financial structure is relatively at a satisfactory level, including 51.8 percent of its consolidated ratio of equity capital to total assets at the end of March, 2010, although its interest bearing liabilities on a consolidated basis increased temporarily due to the construction of the Toyama-Higashi plant. JCR will watch whether the Company can increase its earnings further centering on those of the materials for pharmaceutical products, which are expected to grow over the medium term, including progress in the strengthening its competitiveness as a result of the installation of such production lines.
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