Standard & Poor's Corp. said Tuesday it has affirmed major electronic parts maker TDK Corp.'s AA minus long-term and A-1 plus short-term corporate credit ratings, adding the outlook on the long-term rating remains stable.
The ratings reflect the company's "strong position in various segments of the electronic materials and components market," as well as its "very conservative financial profile, characterized by superior cash flow protection and a capital structure that is free of net debt," the U.S. credit-rating agency said.
Though the global economic condition is weakening on softening market demand, S&P believes TDK "will be able to sustain its current credit standing," given its ample cash holdings, enough to cope with its current operating difficulties, and strong capital structure, which S&P expects to remain largely unchanged.
In explaining its outlook assessment, S&P said it "reflects the expectation that TDK'S credit measures will remain in line with the current rating," despite challenging business conditions.